M/S.MALAYALAM COMMUNICATIONS LTD. V. THE INCOME TAX OFFICER (TDS)

WP(C)/18428/2018

AI Insights

The case involves Malayalam Communications Ltd. and its directors, who challenged the delay in the disposal of their appeal regarding an assessment order under Section 201(1) of the Income Tax Act. The appeal was filed in 2010 and heard in 2016, but no decision had been made by the Commissioner of Income Tax (Appeals) by the time of the writ petition in 2018. The petitioners also faced prosecution notices under Section 276B of the Income Tax Act for the financial year 2013-14, issued by the Commissioner of Income Tax (TDS). The main legal issue was the unreasonable delay in the appellate process, which the petitioners argued violated their rights to a fair and timely hearing.

• Counselvise Citation: [2018] 140 COUNSELVISE.COM (IT) 755205 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 07-06-2018
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: CHRISTOPHER ABRAHAM
• Assessee Lawyers: T M SREEDHARAN; VANDANA MENON; DIVYA RAVINDRAN; V P NARAYANAN
• Keywords: Appeal; Assessment Order; Income Tax; Show cause notice; Prosecution Notice
• Section: 201(1); 276B

Judgement Text

" IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HONOURABLE MR. JUSTICE P.B.SURESH KUMAR THURSDAY, THE 7TH DAY OF JUNE 2018 / 17TH JYAISHTA, 1940 WP(C).No. 18428 of 2018 PETITIONER(S): 1 M/S.MALAYALAM COMMUNICATIONS LTD. KAIRALI TOWERS, NEAR MLA HOSTEL, PALAYAM, THIRUVANANTHAPURAM - 695 034, REPRESENTED BY ITS MANAGING DIRECTOR, SHRI JOHN BRITTAS. 2 SHRI V.K.MOHAMMED ASHRAF DIRECTOR, M/S.MALAYALAM COMMUNICATIONS LTD., VEEKAY HOUSE, EDAYUR - P.O., VALANCHERRY, MALAPPURAM - 676 554. 3 SHRI A.K.MOOSA DIRECTOR, MALAYALAM COMMUNICATIONS LTD., DOOR NO.18/205, REJID VILLA, BEHIND CIVIL STATION, PALAKKAD - 678 001. 4 SHRI JOHN BRITTAS MANAGING DIRECTOR, MALAYALAM COMMUNICATIONS LTD., APARTMENT NO.7A3, ARTECH CITY, KALYANI, VAZHUTHACAUD, THIRUVANANTHAPURAM - 695 010. 5 SHRI P.I.MOHAMMED KUTTY DIRECTOR, MALAYALAM COMMUNICATIONS LTD., NO.222, K.C.JOSEPH ROAD, PANAMPILLY NAGAR, KOCHI - 682 036. 6 SHRI C.K.KARUNAKARAN DIRECTOR, MALAYALAM COMMUNICATIONS LTD., LAW ROCHELLE, A-ONE, VIDYANAGAR, ERNAKULAM. 7 SHRI M.M.MONAYEE DIRECTOR, MALAYALAM COMMUNICATIONS LTD., MALIAKKAL VIKAS NAGAR, MARADU - P.O., ERNAKULAM - 682 304. 8 SHRI A.VIJAYARAGHAVAN DIRECTOR, MALAYALAM COMMUNICATIONS LTD., \"THEJASWINI\", HARISREE NAGAR, AYYANTHOLE - P.O., THRISSUR - 680 003. 9 SHRI T.R.AJAYAN DIRECTOR, MALAYALAM COMMUNICATIONS LTD, JOSHILA, WEST YAKKARA, PALAKKAD - 678 001. BY ADVS.SRI.T.M.SREEDHARAN (SR.) SMT.VANDANA MENON SMT.DIVYA RAVINDRAN SRI.V.P.NARAYANAN -2- RESPONDENT(S): 1. THE INCOME TAX OFFICER (TDS) AYAKKAR BHAWAN, KOWDIAR, THIRUVANANTHAPURAM - 695 003. 2. THE COMMISSIONER OF INCOME TAX (APPEALS) AAYAKAR BHAWAN, KOWDIAR, THIRUVANANTHAPURAM - 695 003. 3. THE COMMISSIONER OF INCOME TAX (TDS) AYAKAR BHAWAN, C.R.BUILDINGS, I.S.PRESS ROAD, COCHIN - 682 018. R BY SRI.CHRISTOPHER ABRAHAM, INCOME TAX DEPARTMENT, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 07-06-2018, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: acd WP(C).No. 18428 of 2018 (C) APPENDIX PETITIONER(S)' EXHIBITS EXHIBIT-P1: TRUE COPY OF ORDER PASSED U/S.201(1) DATED 27.9.2010 ALONG WITH DEMAND NOTICE BY THE 1ST RESPONDENT FOR THE ASST.YEAR 2010-11. EXHIBIT-P2: TRUE COPY OF MEMORANDUM OF APPEAL DATED 26.10.2010 SUBMITTED BY THE 1ST PETITIONER COMPANY BEFORE THE 2ND RESPONDENT. EXHIBIT-P2(A): TRUE COPY OF STAY PETITION DATED 14.5.2018 SUBMITTED BY THE 1ST PETITIONER COMPANY BEFORE THE 2ND RESPONDENT. EXHIBIT-P3: TRUE COPY OF THE LETTER DATED 1.8.2016 SUBMITTED BEFORE THE 2ND RESPONDENT AT THE TIME HEARING OF APPEAL. EXHIBIT-P4: TRUE COPY OF PROSECUTION NOTICE F.NO.CIT(TDS)/KOCHI/PROSECUION/2018-19 DATED 13.4.2018 ISSUED BY THE 3RD RESPONDENT TO THE 2ND PETITIONER FOR THE F.Y.2013-14. EXHIBIT-P4(A): TRUE COPY OF PROSECUTION NOTICE F.NO.CIT(TDS)/KOCHI/PROSECUTION/2018-19 DATED 13.4.2018 ISSUED BY THE 3RD RESPONDENT TO THE 3RD PETITIONER FOR THE F.Y.2013-14. EXHIBIT-P4(B): TRUE COPY OF PROSECUTION NOTICE F.NO.CIT(TDS)/KOCHI/PROSECUTION/2018-19 DATED 13.4.2018 ISSUED BY THE 3RD RESPONDENT TO THE 4TH PETITIONER FOR THE F.Y.2013-14. EXHIBIT-P4(C): TRUE COPY OF PROSECUTION NOTICE F.NO.CIT(TDS)/KOCHI/PROSECUTION/2018-19 DATED 13.4.2018 ISSUED BY THE 3RD RESPONDENT TO THE 5TH PETITIONER FOR THE F.Y.2013-14. EXHIBIT-P4(D): TRUE COPY OF PROSECUTION NOTICE F.NO.CIT(TDS)/KOCHI/PROSECUTION/2018-19 DATED 13.4.2018 ISSUED BY THE 3RD RESPONDENT TO THE 6TH PETITIONER FOR THE F.Y.2013-14. EXHIBIT-P4(E): TRUE COPY OF PROSECUTION NOTICE F.NO.CIT(TDS)/KOCHI/PROSECUTION/2018-19 DATED 13.4.2018 ISSUED BY THE 3RD RESPONDENT TO THE 7TH PETITIONER FOR THE F.Y.2013-14. EXHIBIT-P4(F): TRUE COPY OF PROSECUTION NOTICE F.NO.CIT(TDS)/KOCHI/PROSECUTION/2018-19 DATED 13.4.2018 ISSUED BY THE 3RD RESPONDENT TO THE 8TH PETITIONER FOR THE F.Y.2013-14. EXHIBIT-P4(G): TRUE COPY OF PROSECUTION NOTICE F.NO.CIT(TDS)/KOCHI/PROSECUTION/2018-19 DATED 13.4.2018 ISSUED BY THE 3RD RESPONDENT TO THE 9TH PETITIONER FOR THE F.Y.2013-14. EXHIBIT-P5: TRUE COPY OF REPLY DATED 18.5.2018 SUBMITTED BY THE 1ST PETITIONER COMPANY TO THE 3RD RESPONDENT. TRUE COPY P.S. TO JUDGE. P.B. SURESH KUMAR, J. ------------------------------------------- W.P .(C)No. 18428 of 2018 ---------------------------------------------- Dated this the 7th day of June, 2018 JUDGMENT Challenging Ext.P1 assessment order under Section 201(1) of the Income Tax Act (the Act), the first petitioner preferred Ext.P2 appeal before the second respondent. Ext.P2(a) is the stay petition preferred by the first petitioner in Ext.P2 appeal. The grievance voiced by the petitioners in the writ petition is that though Ext.P2 appeal was heard during 2016, orders are yet to be passed. 2. The learned Standing Counsel for the revenue points out that Ext.P4 series which are also under challenge are only notices calling upon the petitioners 2 to 9 to show cause why they shall not be prosecuted under Section 276B of the Act. According to the learned Standing Counsel, the said notices being show cause notices, a writ petition is not maintainable against the same. 3. The learned Senior Counsel for the petitioners submits that the petitioners are seeking only a direction to the W.P.(c)No.18428/2018 2 second respondent to dispose of Ext.P2 appeal finally. In so far as Ext.P2 being an appeal preferred by the petitioners in the year 2010 and in so far as it is contended by the petitioners that the said appeal was heard finally during 2016, I deem it appropriate to dispose of the writ petition directing the second respondent to dispose of finally Ext.P2 appeal within six weeks from the date of receipt of a copy of this judgment. It is made clear that the proceedings initiated by the third respondent in terms of Ext.P4 series notices can be continued. Ordered accordingly. Sd/- P.B. SURESH KUMAR, JUDGE. acd W.P.(c)No.18428/2018 3 "