Mathew George V. Union of India and Central Board of Direct Taxes and Principal Commissioner of Income Tax (Central), Kochi and Commissioner of Income Tax (Appeals) - 3 and Assistant Director of Income Tax (Inv.)-II

WP(C)/18218/2024

AI Insights

The case involves Mathew George, the petitioner, challenging an order (Ext.P9) from the Commissioner of Income-Tax (Appeals)-3, Kochi, which imposed a condition of depositing 10% of the demands raised against him for staying the recovery of the balance amount for the assessment year 2017-18 under the Black Money Act. The petitioner argued that according to Rule 6(4) of the Black Money Rules, he was only required to remit the admitted amounts to maintain the appeal. The respondents contended that the petitioner had already remitted five installments as per the Ext.P9 order and could not challenge it now. The court, without delving into the merits of the case, decided to set aside the Ext.P9 order based on the substantial compliance by the petitioner in depositing 50% of the demanded amount.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 800212 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 05-08-2024
• Assessment Year: misc
• Laws Referred To: Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Rules, 2015
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: NAVANEETH NATH; SUSIE VARGHESE; JOSE JOSEPH
• Assessee Lawyers: ROSHIN JOSEPH
• Keywords: Appeal; Black money; Imposition of Tax; Penalty; Stay of recovery; Undisclosed Foreign Income
• Section: 43; 41; 10(3); 6.4; 6.4

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE GOPINATH P. MONDAY, THE 5TH DAY OF AUGUST 2024 / 14TH SRAVANA, 1946 WP(C) NO. 18218 OF 2024 PETITIONER/S: MATHEW GEORGE, AGED 69 YEARS S/O.K.G.GEORGE, 3A, LINK HORIZON, MARINE DRIVE, ERNAKULAM HIGH COURT P. O., ERNAKULAM, PIN - 682031 BY ADV ROSHIN IPE JOSEPH RESPONDENT/S: 1 UNION OF INDIA, REPRESENTED BY REVENUE SECRETARY, 128A, NORTH BLOCK, NEW DELHI, PIN - 110001 2 CENTRAL BOARD OF DIRECT TAXES, REPRESENTED BY ITS CHAIRMAN, NORTH BLOCK, SECRETARIAT BUILDING, NEW DELHI, PIN - 110001 3 PRINCIPAL COMMISSIONER OF INCOME TAX (CENTRAL), KOCHI, KANDAMKULATHI TOWERS, M. G. ROAD, ERNAKULAM P. O., KOCHI, PIN - 682011 4 COMMISSIONER OF INCOME TAX (APPEALS) - 3, POORNIMA BUILDINGS, NEAR MANORAMA JUNCTION, PANAMPILLY NAGAR, ERNAKULAM, KOCHI, PIN - 682036 5 ASSISTANT DIRECTOR OF INCOME TAX (INV.)-II, 4TH FLOOR, AARYA BHANGI PINNACLE, ERNAKULAM, S. A. ROAD, KOCHI, PIN - 682020 BY ADVS. NAVANEETH.N.NATH, CGC SUSIE B VARGHESE JOSE JOSEPH, SC, INCOME TAX DEPARTMENT, KERALA THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 05.08.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 18218 OF 2024 2 JUDGMENT This writ petition has been filed, challenging Ext.P9 order of the commissioner of Income-Tax (Appeals)-3, Kochi, imposing a condition of deposit of 10% of the demands raised against the petitioner under Exts.P1, P3 and P5 orders imposing penalty for staying the recovery of the balance amount, for the assessment year 2017-18, under the provisions of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015. 2. It is the case of the petitioner that, under the provisions of Rule 6(4) of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Rules, 2015 , the petitioner is required only to remit the admitted amounts as a condition for maintenance of the appeal. 3. Learned Standing Counsel appearing for the respondent-Department would submit that the petitioner has already remitted five instalments in terms of the directions contained in Ext.P9 order and the petitioner cannot now turn around to challenge the said order. WP(C) NO. 18218 OF 2024 3 4. Learned counsel appearing for the petitioner would submit, in reply, that already an amount of Rs.25 lakhs has been remitted against a total demand of approximately Rs.5 Crores. It is his case that even if the case against the petitioner is established, a major portion of the liability, including penalty, would be wiped out and the entire liability of the petitioner will not exceed a sum of Rs.25 lakhs. 5. Having heard the learned counsel appearing for the petitioner and the learned Standing Counsel appearing for the respondent-Department, and without going into the merits of the contentions taken, I am of the opinion that this writ petition need not be kept pending as the merits of the matter have to be considered by the First Appellate Authority, in the pending appeal. It is not disputed before me that, nearly 50% of the amount directed to be paid as a condition for stay in Ext.P9 order has already been remitted by the petitioner. I am of the opinion that the amount already remitted by the petitioner is sufficient as a condition for stay, pending disposal of the appeal by the First Appellate Authority. Accordingly, the writ petition will stand disposed of, setting aside Ext.P9 order and directing that as the petitioner has WP(C) NO. 18218 OF 2024 4 deposited 50% of the amount directed to be paid in terms of Ext.P9, further proceedings for recovery of any amount in terms of Exts.P1, P3 and P5 orders shall remain suspended pending disposal of the appeals filed against Exts.P1, P3 and P5 orders before the First Appellate Authority. The First Appellate Authority shall endeavour to dispose of the appeals within a period of three months from the date of receipt of a certified copy of this judgment, after affording an opportunity of hearing to the petitioner. Sd/- GOPINATH P. JUDGE ajt WP(C) NO. 18218 OF 2024 5 APPENDIX OF WP(C) 18218/2024 PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF THE ORDER DATED 27-4-2020 UNDER S.10(3) OF THE BLACK MONEY (UNDISCLOSED FOREIGN INCOME AND ASSETS) AND IMPOSITION OF TAX ACT, 2015 Exhibit P2 TRUE COPY OF THE DEMAND NOTICE DATED 27-4- 2020 ISSUED TO THE PETITIONER IN FORM I UNDER RULE 5 OF THE BLACK MONEY AND IMPOSITION OF TAX RULES, 2015, DEMANDING FROM THE PETITIONER A SUM OF RS.1,34,45,129/- (RUPEES ONE CRORE THIRTY FOUR LAKHS FORTY FIVE THOUSAND ONE HUNDRED AND TWENTY NINE ONLY) Exhibit P3 TRUE COPY OF THE ORDER DATED 16-3-2022 PASSED BY FIFTH RESPONDENT UNDER S.41 OF THE BLACK MONEY (UNDISCLOSED FOREIGN INCOME AND ASSETS) AND IMPOSITION OF TAX ACT, 2015 Exhibit P4 TRUE COPY OF THE DEMAND NOTICE DATED 16-3- 2022 ISSUED TO THE PETITIONER IN FORM I UNDER RULE 5 OF THE BLACK MONEY AND IMPOSITION OF TAX RULES, 2015, DEMANDING A SUM OF RS.4,03,35,387/- (RUPEES FOUR CRORES THREE LAKHS THIRTY FIVE THOUSAND THREE HUNDRED AND EIGHTY SEVEN ONLY) FROM THE PETITIONER Exhibit P5 TRUE COPY OF THE ORDER DATED 16-3-2022 PASSED BY FIFTH RESPONDENT UNDER S.43 OF THE BLACK MONEY (UNDISCLOSED FOREIGN INCOME AND ASSETS) AND IMPOSITION OF TAX ACT, 2015 Exhibit P6 TRUE COPY OF THE DEMAND NOTICE DATED 16-3- 2022 ISSUED TO THE PETITIONER IN FORM I UNDER RULE 5 OF THE BLACK MONEY AND IMPOSITION OF TAX RULES, 2015, DEMANDING A SUM OF RS.10,00,000/- (RUPEES TEN LAKHS ONLY) FROM THE PETITIONER Exhibit P7 TRUE COPY OF THE LETTER DATED 17-6-2022 ISSUED BY THIRD RESPONDENT TO THE PETITIONER Exhibit P8 TRUE COPY OF THE JUDGMENT DATED 22-8-2023 PASSED BY THIS HON'BLE COURT IN W. P.(C) NO.22177 / 2022 Exhibit P9 TRUE COPY OF THE ORDER DATED 8-1-2024 BEARING NO. ITBA/COM/F/17/2023-24/1059446723(1) Exhibit P10 TRUE COPY OF CHALLAN RECEIPT BEARING NO.00028 DATED 25-1-2024 ISSUED BY THE INCOME TAX DEPARTMENT WP(C) NO. 18218 OF 2024 6 Exhibit P11 TRUE COPY OF CHALLAN RECEIPT BEARING NO.00032 DATED 25-1-2024 ISSUED BY THE INCOME TAX DEPARTMENT Exhibit P12 TRUE COPY OF CHALLAN RECEIPT BEARING NO.00359 DATED 26-2-2024 ISSUED BY INCOME TAX DEPARTMENT Exhibit P13 TRUE COPY OF CHALLAN RECEIPT BEARING NO.00010 DATED 25-3-2024 ISSUED BY INCOME TAX DEPARTMENT Exhibit P14 TRUE COPY OF CHALLAN RECEIPT BEARING NO.00010 DATED 23-4-2024 ISSUED BY INCOME TAX DEPARTMENT "