Mohammed Koya Karuppan Veettil V. The Assistant Educational Officer, Kondotty and The Headmaster, A.M.U.P. School, Puthurpallikkal

WP(C)/37772/2018

AI Insights

The case involves Mohammed Koya Karuppan Veettil, a retired headmaster, who challenged the withholding of his pay revision arrears by his successor, the 2nd respondent, due to alleged non-compliance with income tax TDS return filing during his tenure. The petitioner argued that the arrears were withheld unjustly as he had already retired and received his pensionary benefits, and that the responsibility for filing TDS returns lay with the headmaster in charge at the time, not with him post-retirement. The court found that the 2nd respondent lacked the authority to withhold the petitioner's dues and that the Income Tax Department should address any non-compliance issues directly with the concerned individuals.

• Counselvise Citation: [2019] 140 COUNSELVISE.COM (IT) 816122 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 11-06-2019
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: HARISANKAR MENON; MEERA MENON
• Assessee Lawyers: K JAJU BABU
• Keywords: Income Tax; Pay Revision Arrears; Penalty; TDS returns; Retired Headmaster
• Section: 234E; 200A; 200

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE SMT. JUSTICE P.V.ASHA TUESDAY, THE 11TH DAY OF JUNE 2019 / 21ST JYAISHTA, 1941 WP(C).No. 37772 of 2018- PETITIONER/S: MOHAMMED KOYA KARUPPAN VEETTIL, AGED 59 YEARS HEADMASTER (RETIRED), AM U.P.SCHOOL, PUTHURPALLIKKAL, KONDOTTY P.O., MALAPPURAM DISTRICT, RESIDING AT MELE THADATHIL HOUSE, PALLIKKAL P.O., MALAPPURAM - 673 634. BY ADV. SRI.K.JAJU BABU (SR.) RESPONDENT/S: 1 THE ASSISTANT EDUCATIONAL OFFICER, KONDOTTY, MALAPPURAM - 673 638. 2 THE HEADMASTER, A.M.U.P.SCHOOL, PUTHURPALLIKKAL, KONDOTTY P.O., MALAPPURAM-673 638. BY ADVS. SRI.HARISANKAR V. MENON SMT.MEERA V.MENON THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 11.06.2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: P.V.ASHA,J. ---------------------------- W.P.(C) No.37772 of 2018 ---------------------------- Dated this the 11th day of June, 2019 JUDGMENT A retired Headmaster of aided UP School, has filed this Writ Petition, challenging Ext.P5 letter issued by the 2nd respondent, who is the present Headmaster of the School, by which he was informed that arrears of pay due to him would be paid only on production of receipt towards remittance of the penalty for the delay in filing income tax TDS returns for the period during which the petitioner was the Headmaster. 2. Petitioner was promoted as Headmaster on 01.04.2010 and he retired from service on 31.03.2016. Even though his pensionary benefits were disbursed, the pay revision arrears are not paid to him in full. The arrears on account of pay revision are paid in four installments. He received only the first installment. 3. The 2nd respondent informed the petitioner that he received a notice from the Income Tax Department W.P .(C) No.37772/2018 :3: proposing to impose fine for not filing TDS returns and therefore he would process the bills towards the balance installment of arrears only after the petitioner remits the fine. According to the petitioner the returns are to be filed by the Headmaster in charge. It is stated that a sum of Rs.2,70,169/- was deducted as TDS for the financial year 2015-16, though no returns were filed. Petitioner submits that the Income Tax Department had as per Ext.P1 letter dt.17.07.2017 allowed the 2nd respondent to furnish quarterly TDS returns. It is stated that a fine of Rs.1,75,400/-, was imposed since the 2nd respondent did not file the returns even after Ext.P1 letter was issued. Petitioner submits that the 2nd respondent never informed him regarding any action on non filing of TDS return. According to him once the NLC is issued and all the pensionary benefits are granted to him he cannot be made liable for any lapse on his part. 4. Petitioner submits that the 1st respondent AEO, had by Ext.P2 letter informed the Income Tax Department that no action can be taken against the petitioner to W.P .(C) No.37772/2018 :4: realise fine from him. Due to the adamant action of the 2nd respondent, petitioner submitted Exts.P3 and P4 representations, requesting for arrears of pay. Thereupon the 2nd respondent informed the petitioner as per Ext.P5 letter that no action would be taken unless he produced the receipt towards remittance of fine. According to the petitioner, it is for the Income Tax Department to take appropriate action in accordance with law against the person who committed default in not filing the TDS returns; since the petitioner has already been issued NLC and disbursed his pensionary benefits, no action can be taken against him. The Writ Petition is filed seeking a direction to the 2nd respondent to take steps for payment of arrears of pay. 5. The 2nd respondent has filed a counter affidavit. Producing the postal envelope with the residential address of the petitioner on it, the 2nd respondent states that Ext.P1 was a notice addressed to the petitioner. By Ext.P1 notice, the Income Tax Department had directed the petitioner to furnish the quarterly TDS returns immediately and to furnish the W.P .(C) No.37772/2018 :5: copy of the token on or before 9.8.2017, when a hearing was posted. There was also a threat to take appropriate penal action in the event of any non compliance. It is stated that even though the amount towards TDS was paid, quarterly returns were not filed as provided under the statute. It is also stated that TDS for the financial year 2015-16 was deducted. Despite that it was necessary to file the return with reference to different quarters. Referring to Section 200 of the IT Act, it is stated that it is the duty of the Headmaster at the relevant time to file the TDS returns for the respective quarters and it was for the petitioner to file the same for the first three quarters of the financial year 2015-16. The 2nd respondent asserts that the petitioner himself received Ext.P1 and therefore he was aware of the non filing of returns. The returns were filed only after the 2nd respondent took charge on 01.06.2017. It is stated that one Smt.Sainaba took charge from the petitioner on 1.4.2016 and the 2nd respondent took charge on 01.06.2017. It is also stated that as per the intimations received from the Income W.P .(C) No.37772/2018 :6: Tax Department under section 200A penalty is payable at the rate of Rs.18,300/-, Rs.27450/-, Rs.27,450/- and Rs.1,02,400/- respectively for the 4 quarters of 2015- 16 towards late fees under Section 234E, as per Ext.R2b to R2(e) notices. 6. An additional counter affidavit is filed by the 2nd respondent pointing out that the 1st respondent had as per Ext.R2(f) letter informed the petitioner that he was liable to remit the penalty towards the non filing of returns for the period during which he had functioned as Headmaster. He was also directed to submit his objections if any after appearing before the Income Tax Office. He was also directed to approach the 2nd respondent for releasing the benefits, after remitting the penalty. 7. The question arising in this case is whether the arrears of pay due to a retired Headmaster can be withheld by his successor Headmaster, even assuming that the retired Headmaster failed to perform his statutory duty in filing the returns. I am of the considered view that it is for the Income Tax W.P .(C) No.37772/2018 :7: Department to take action in this matter in accordance with law. In case the 2nd respondent was called upon by Income Tax Department, petitioner could have appraised the Department as to the actual state of affairs. At any rate the 2nd respondent has no authority to withhold the arrears of pay due to petitioner, which he is entitled towards the service rendered by him. The authorities who are competent have already issued his NLC and he has received the retirement benefits. There is no provision which permits a subsequent incumbent of the post to take any action against the former incumbent. In the above circumstances, the 2nd respondent shall see that the arrears of salary due to the petitioner is disbursed to him without any further delay and at any rate within a period of one month from the date of receipt of a copy of the judgment. The Writ Petition is disposed of accordingly. Sd/- P.V.ASHA rkc JUDGE W.P .(C) No.37772/2018 :8: APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 COPY OF THE COMMUNICATION DATED 17.07.2017 ISSUED BY THE INCOME TAX OFFICER(TDS), KOZHIKODE TO THE 2ND RESPONDENT. EXHIBIT P2 COPY OF THE REPLY LETTER DATED 07.05.2018 SUBMITTED BY THE 1ST RESPONDENT TO THE INCOME TAX OFFICER(TDS), KOZHIKODE. EXHIBIT P3 COPY OF THE REPRESENTATION DATED 08.03.2018 SUBMITTED BY THE PETITIONER BEFORE THE 1ST RESPONDENT. EXHIBIT P4 COPY OF THE REPRESENTATION DATED 20.10.2018 SUBMITTED BY THE PETITIONER BEFORE THE 2ND RESPONDENT. EXHIBIT P5 COPY OF THE COMMUNICATION DATED 30.10.2018 ISSUED BY THE 2ND RESPONDENT TO THE PETITIONER. RESPONDENTS' EXHIBITS EXT.R2A: COPY OF POSTAL ACKNOWLEDGMENT CARD EVIDENCING THE RECEIPT OF THE NOTICE BY THE PETITIONER EXT.R2B: COPY OF INTIMATION ISSUED BY THE INCOME TAX DEPARTMENT FOR THE 1ST QUARTER FOR THE YEAR 2015-16 EXT.R2C: COPY OF INTIMATION ISSUED BY THE INCOME TAX DEPARTMENT FOR THE 2ND QUARTER FOR THE YEAR 2015-16 EXT.R2D: COPY OF ORDER ISSUED BY THE INCOME TAX DEPARTMENT FOR THE 3RD QUARTER FOR THE YEAR 2015-16 EXT.R2E: COPY OF ORDER ISSUED BY THE INCOME TAX DEPARTMENT FOR THE 4TH QUARTER FOR THE YEAR 2015-16 W.P .(C) No.37772/2018 :9: EXT.R2F: COPY OF LETTER ISSUED BY THE 1ST RESPONDENT TO THE PETITIONER EXT.R2G: COPY OF POSTAL ACKNOWLEDGEMENT CARD RECEIVED FROM THE DEPARTMENT OF POSTS "