POPULAR FINANCE COMPANY V. THE ADDITIONAL COMMSSIONER OF INCOME TAX

WP(C)/12560/2019

AI Insights

The case involves M/s. Popular Finance, represented by Thomas Daniel, who challenged a penalty order issued by the Additional Commissioner of Income Tax, Thiruvalla Range, under Section 271E of the Income Tax Act. The petitioner filed an appeal against the penalty and simultaneously requested a stay on the demand for the penalty. The High Court of Kerala, considering the timely appeal and the statutory provisions, decided to defer any recovery actions until the stay petition is resolved, thereby allowing the petitioner to exhaust all available legal remedies.

• Counselvise Citation: [2019] 140 COUNSELVISE.COM (IT) 754769 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 26-04-2019
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: JOSE JOSEPH
• Assessee Lawyers: HARISANKAR MENON; MEERA MENON
• Keywords: Income Tax; Penalty order; Stay of demand
• Section: 271E

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE V.G.ARUN FRIDAY, THE 26TH DAY OF APRIL 2019/6TH VAISAKHA, 1941 W.P.(C) No.12560 of 2019 PETITIONER: M/S.POPULAR FINANCE, POPULAR TOWERS, VAKAYAR, KONNI, PATHANAMTHITTA-689 698, REPRESENTED BY THOMAS DANIEL, AGED 64 YEARS, S/O.T.K.DANIEL. MANAGING PARTNER, BY ADVS. SRI.HARISANKAR V. MENON SMT.MEERA V.MENON RESPONDENTS: 1 THE ADDITIONAL COMMSSIONER OF INCOME TAX, THIRUVALLA RANGE, THIRUVALLA-689 101. 2 THE COMMISSIONER OF INCOME TAX(APPEALS), SASTRI ROAD, KOTTAYAM-686 001. OTHER PRESENT: S.C.: SRI.JOSE JOSEPH THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 26.04.2019 ALONG WITH W.P.(c)Nos.12604 & 12621 of 2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C) Nos.12560, 12604 & 12621 of 2019 2 IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE V.G.ARUN FRIDAY, THE 26TH DAY OF APRIL 2019/6TH VAISAKHA, 1941 W.P.(C)No.12604 of 2019 PETITIONER: M/S.POPULAR FINANCE COMPANY, POPULAR TOWERS, VAKAYAR, KONNI, PATHANAMTHITTA - 689 698, REPRESENTED BY THOMAS DANIEL, MANAGING PARTNER, AGED 64 YEARS, S/O.T.K.DANIEL. BY ADVS. SRI.HARISANKAR V. MENON SMT.MEERA V.MENON RESPONDENTS: 1 THE ADDI.COMMISSIONER OF INCOME TAX, THIRUVALLA RANGE, THIRUVALLA - 689 101. 2 THE COMMISSIONER OF INCOME TAX (APPEALS), SASTRI ROAD, KOTTAYAM - 686 001. OTHER PRESENT: S.C.: SRI.JOSE JOSEPH THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 26.04.2019 ALONG WITH W.P.(C)Nos.12560 & 12621/2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C) Nos.12560, 12604 & 12621 of 2019 3 IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE V.G.ARUN FRIDAY, THE 26TH DAY OF APRIL 2019/6TH VAISAKHA, 1941 W.P.(C)No.12621 of 2019 PETITIONER: M/S.POPULAR MINI FINANCE, POPULAR TOWERS, VAKAYAR, KONNI, PATHANAMTHITTA 689 698, REPRESENTED BY THOMAS DANIEL, MANAGING PARTNER, AGED 64 YEARS, S/O. T.K. DANIEL. BY ADVS. SRI.HARISANKAR V. MENON SMT.MEERA V.MENON RESPONDENTS: 1 THE ADDI.COMMISSIONER OF INCOME TAX, THIRUVALLA RANGE, THIRUVALLA - 689 101. 2 THE COMMISSIONER OF INCOME TAX (APPEALS), SASTRI ROAD, KOTTAYAM 686 001. OTHER PRESENT: S.C. : SRI.JOSE JOSEPH THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 26.04.2019 ALONG WITH W.P.(C)Nos.12604 & 12560/2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C) Nos.12560, 12604 & 12621 of 2019 4 JUDGMENT The petitioner, an assessee under the Income Tax Act, was served with Ext.P1 penalty order, issued by the first respondent under Section 271E of the Income Tax Act. The petitioner has challenged Ext.P1 by filing Ext.P2 appeal. Along with the appeal, the petitioner has filed Ext.P3 application for stay of the demand pursuant to Ext.P1. Since the petitioner has availed the statutory remedy against Ext.P1 within time, it is only appropriate that recovery pursuant to Ext.P1 be deferred till a decision is taken on Ext.P3 stay petition. Therefore, the Writ Petition is disposed of directing the second respondent to defer coercive steps until a decision is taken on Ext.P3 stay petition. The second respondent W.P.(C) Nos.12560, 12604 & 12621 of 2019 5 shall take expeditious steps for considering the stay petition. Sd/- V.G.ARUN ss JUDGE W.P.(C) Nos.12560, 12604 & 12621 of 2019 6 APPENDIX - W.P.(C) 12621/2019 PETITIONER'S EXHIBITS: EXHIBIT P1 COPY OF ORDER ISSUED BY THE 1ST RESPONDENT FOR THE YEAR 2014-15 DATED 27.3.2019. EXHIBIT P2 COPY OF APPEAL FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT FOR THE YEAR 2014-15 DATED 18.4.2019. EXHIBIT P3 COPY OF STAY PETITION FIELD BY THE PETITIONER BEFORE THE 2ND RESPONDENT FOR THE YEAR 2014-15 DATED 17.4.2019. APPENDIX - W.P.(C) 12604/2019 PETITIONER'S EXHIBITS: EXHIBIT P1 COPY OF ORDER ISSUED BY THE 1ST RESPONDENT FOR THE YEAR 2014-15. EXHIBIT P2 COPY OF APPEAL FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT FOR THE YEAR 2014-15. EXHIBIT P3 COPY OF STAY PETITION FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT FOR THE YEAR 2014-15. W.P.(C) Nos.12560, 12604 & 12621 of 2019 7 APPENDIX - W.P.(C) 12560/2019 PETITIONER'S EXHIBITS: EXHIBIT P1 COPY OF ORDER ISSUED BY THE 1ST RESPONDENT FOR THE YEAR 2014-15. EXHIBIT P2 COPY OF APPEAL FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT FOR THE YEAR 2014-15. EXHIBIT P3 COPY OF STAY PETITION FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT FOR THE YEAR 2014-15. "