M/S.MALABAR SANDS AND STONES (P) LTD. V. THE PRINCIPAL COMMISSIONER OF INCOME TAX (CENTRAL), KOCHI

WP(C)/8378/2018

AI Insights

The case involves M/S Malabar Sands and Stones (P) Ltd., a company engaged in quarrying, which faced significant tax liabilities due to non-operation of their quarry for an extended period, attributed to the lack of environmental clearance. After obtaining the necessary clearance and resuming operations, the company sought the court's permission to pay their tax liabilities, totaling Rs.6,14,12,920, in installments rather than a lump sum, citing financial difficulties due to the prolonged period of non-operation. The court considered the circumstances and similar past judgments, deciding to allow the payment in installments to ease the financial burden on the petitioner.

• Counselvise Citation: [2018] 140 COUNSELVISE.COM (IT) 755284 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 13-03-2018
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: JOSE JOSEPH
• Assessee Lawyers: SANTHOSH MATHEW; ARUN THOMAS; JENNIS STEPHEN; VIJAY PAUL; KARTHIKA MARIA; MARIA ROY; VEENA RAVEENDRAN
• Keywords: Assessment Order; Environmental clearance; Income Tax; Instalment payment
• Section: 143(3)

Judgement Text

" IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HONOURABLE MR. JUSTICE P.B.SURESH KUMAR TUESDAY, THE 13TH DAY OF MARCH 2018 / 22ND PHALGUNA, 1939 WP(C).No. 8378 of 2018 PETITIONER M/S.MALABAR SANDS AND STONES (P) LTD. PAN: AAGCM1861Q, PARAPPA, P.O., KUTTAPARAMBA, KANNUR - 670 571, REPRESENTED BY ITS MANAGING DIRECTOR, HARIS CHARATTIADAN, AGED 47, S/O.MEMI. BY ADVS.SRI.SANTHOSH MATHEW SRI.ARUN THOMAS SRI.JENNIS STEPHEN SRI.VIJAY V. PAUL SMT.KARTHIKA MARIA SMT.MARIA ROY SMT.VEENA RAVEENDRAN RESPONDENTS: 1. THE PRINCIPAL COMMISSIONER OF INCOME TAX (CENTRAL), KOCHI, O/O.THE COMMISSIONER OF INCOME TAX (CENTRAL), COCHIN, 5TH FLOOR, KANDAMKULATHY TOWERS, M.G.ROAD, COCHIN - 682 011. 2. THE ASSISTANT COMMISSIONER OF INCOME TAX CENTRAL CIRCLE-2 AAYAKAR BHAVAN (NORTH BLOCK), KOZHIKODE-673 001. BY SRI.JOSE JOSEPH, SC, FOR INCOME TAX THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 13-03-2018, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No. 8378 of 2018 (V) APPENDIX PETITIONER'S EXHIBITS EXHIBIT-P1: TRUE COPY OF THE INTERIM ORDER DATED 18.12.2017 IN W.P.(C) NO.4022 OF 2017 OF THIS HONOURABLE COURT. EXHIBIT-P2: TRUE COPY OF ASSESSMENT ORDER DATED 27.12.2017 FOR THE ASSESSMENT YEAR 2013-14 ALONG WITH CONNECTED NOTICES ISSUED TO THE PETITIONER BY THE SECOND RESPONDENT. EXHIBIT-P3: TRUE COPY OF ASSESSMENT ORDER DATED 27.12.2017 FOR THE ASSESSMENT YEAR 2013-14 ALONG WITH CONNECTED NOTICES ISSUED TO THE PETITIONER BY THE SECOND RESPONDENT. EXHIBIT-P4: TRUE COPY OF ASSESSMENT ORDER DATED 27.12.2017 FOR THE ASSESSMENT YEAR 2015-16 ALONG WITH CONNECTED NOTICES ISSUED TO THE PETITIONER BY THE SECOND RESPONDENT. EXHIBIT-P5: TRUE COPY OF ASSESSMENT ORDER DATED 27.12.2017 FOR THE ASSESSMENT YEAR 2016-17 ALONG WITH CONNECTED NOTICES ISSUED TO THE PETITIONER BY THE SECOND RESPONDENT. EXHIBIT-P6: TRUE COPY OF THE CHART DETAILING THE BREAK-UP OF TAX PAYABLE WITH INTEREST FOR THE ASSESSMENT YEARS 2013-14, 2014-15, 2015-16 AND 2016-17 PREPARED BY THE PETITIONER. EXHIBIT-P7: TRUE COPY OF THE NOTICE DATED 22.1.2018 ISSUED BY THE SECOND RESPONDENT TO THE PETITIONER. EXHIBIT-P8: TRUE COPY OF THE NOTICE DATED 22.2.2018 ISSUED BY THE FIRST RESPONDENT FOR THE ASSESSMENT YEAR 2016-17. EXHIBIT-P9: TRUE COPY OF THE NOTICE ISSUED BY THE FIRST RESPONDENT DATED 8.12.2017 ISSUED BY THE FIRST RESPONDENT FOR THE ASSESSMENT YEAR 2013-14, 2014-15 AND 2015-16. RESPONDENT'S EXHIBITS:NIL //TRUE COPY// SD/- PA TO JUDGE rsr P.B.SURESH KUMAR, J. -------------------------------------------- W.P.(C).No.8378 of 2018 --------------------------------------------------------------- Dated this the 13th day of March, 2018 J U D G M E N T Petitioner is an assessee under the Income T ax Act. In terms of Exts.P2 to P5 orders, the petitioner is liable to pay a sum of Rs.3,62,05,486/- towards tax. It is stated by the petitioner that the said amount along with interest due thereon now comes to Rs.6,14,12,920/-. The case of the petitioner is that they were running a quarry and they could not operate the quarry for quite a long time for want of environmental clearance. It is also stated by the petitioner that now, after a prolonged process, they have been issued environmental clearance and consequently, they have restored the quarrying operations. It is stated by the petitioner that since there was no business for a quite long time, they are not in a position to liquidate the liability in lumpsum, and that if the petitioner is extended instalment facility, they can liquidate the liability. W.P.(c).No.8378 of 2018 : 2 : The petitioner, therefore, seeks indulgence of this Court for payment of the liability, the particulars of which are shown in Ext.P6, in convenient instalments. 2. Heard the learned counsel for the petitioner as also the learned Standing Counsel for the respondents. Having regard to the facts and circumstances of the case, especially the averments made in the writ petition as also the judgments rendered by this Court in similar and identical matters, I deem it appropriate to dispose of the writ petition permitting the petitioner to liquidate the liability with interest due, in twelve equal monthly instalments, the first of which shall be paid, on or before 16/04/2018. Needless to say that if the petitioner commits default in payment of any one of the instalments, the respondents will be free to realise the entire dues in lumpsum. Needless also to say that if the petitioner makes the payment as directed above, further coercive action against the petitioner shall be deferred. Sd/- P.B.SURESH KUMAR JUDGE rsr "