M/S. SHAH ENTERPRISES V. INCOME TAX OFFICER

WP(C)/2515/2016

AI Insights

The case involves M/s. Shah Enterprises, the petitioner, who approached the Kerala High Court seeking a directive for the correction of a PAN error that led to an incorrect tax demand. The petitioner had remitted Rs.1,65,000/- towards income tax, which was erroneously credited to another entity's PAN. Despite attempts to rectify this through the Income Tax Officer and the Banking Ombudsman, the issue remained unresolved, leading to the filing of this writ petition. The court's decision mandates the transfer and adjustment of the funds to rectify the PAN error and halt any recovery actions until the adjustment is made.

• Counselvise Citation: [2016] 140 COUNSELVISE.COM (IT) 755485 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 03-11-2016
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: P K R MENON; JOSE JOSEPH; SYAM SAM; K M V PANDALAI; R S KALKURA
• Assessee Lawyers: K M FIROZ; M SHAJNA; S KANNAN; UMMUL FIDA
• Keywords: Income Tax; PAN error; Tax adjustment; Writ petition
• Section: 143(1)

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HONOURABLE MR.JUSTICE A.M.SHAFFIQUE THURSDAY, THE 3RD DAY OF NOVEMBER 2016/12TH KARTHIKA, 1938 WP(C).No. 2515 of 2016 (L) --------------------------- PETITIONER(S): ------------- M/S. SHAH ENTERPRISES H.O.MAIN JUNCTION, CHANGANACHERRY, KOTTAYAM DISTRICT, KERALA 686101, REPRESENTED BY H. MUZAMMIL, MANAGING PARTNER BY ADVS.SRI.K.M.FIROZ SMT.M.SHAJNA SRI.S.KANNAN SMT.UMMUL FIDA RESPONDENT(S): -------------- 1. INCOME TAX OFFICER WARD II, THIRUVALLA, OFFICE OF THE INCOME TAX OFFICER, CIRCLE I, THIRUVALLA KOTTAYAM DISTRICT 689101 2. THE ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE I, THIRUVALLA, OFFICE OF THE ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE I, THIRUVALLA, KOTTAYAM DISTRICT 689101 3. INCOME TAX OFFICER WARD NO. I, RAIGARH, CHATTISGARH 4. THE PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX KERALA OFFICE OF THE PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX, 2ND FLOOR, CENTRAL REVENUE BUILDING, IS PRESS ROAD, ERNAKULAM 682018 5. RINCIPAL DIRECTOR GENERAL OF INCOME TAX ( ADMINISTRATION)ROOM NO.501, MAYUR BHAWAN, CONNAUGHT CIRCUS, NEW DELHI WP(C).No. 2515 of 2016 (L) 6. THE STATE BANK OF TRAVANCORE MAIN BRANCH, CHANGANACHERRY, KOTTAYAM DISTRICT 689101, REPRESENTED BY ITS CHIEF MANAGER 7. BANKING OMBUDSMAN OFFICE OF THE BANKING OMBUDSMAN, RESERVE BANK OF INDIA, THIRUVANANTHAPURAM 695033 R1 R2 & R4 BY ADV. SRI.P.K.R.MENON,SC, BY ADV. SRI.JOSE JOSEPH, SC, R3 BY ADV. SRI.SYAM J SAM BY SRI.K.M.V.PANDALAI, INCOME TAX DEPARTMENT R6 BY SRI.R.S.KALKURA, SC, SBT BY SRI.MATHEWS J.NEDUMPARA THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 03-11-2016, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: bp WP(C).No. 2515 of 2016 (L) --------------------------- APPENDIX PETITIONER(S)' EXHIBITS ----------------------- P1: A TRUE COPY OF THE PANCARD OF THE PETITIONER BEARING PAN NO. AAGFS 8396 B ISSUED BY COMMISSIONER OF INCOME TAX, TRIVANDRUM P2: A TRUE COPY OF THE CLARIFICATION LETTER F.NO.385/12/77-IT (B) DATED 31.03.1977 ISSUED BY INCOME TAX DEPARTMENT IN WHCIH CIRCULAR NO. 3 DATED 11.02.1969 EXTRATED P3: A TRUE COPY OF THE CHELLAN BEARING SERIAL NO.98 EVIDENCING THE REMITTANCE OF RS.1,65,000/- BY THE PETITIONER TO THE 6TH RESPONDENT TOWARDS INCOME TAX P3 A: A TRUE COPY OF THE CHELLAN BEARING SERIAL NO.98 EVIDENCING THE REMITTANCE OF RS.15,000/- BY THE PETITIONER TO THE 6TH RESPONDET TOWARDS FRINGE BENEFIT TAX P4: A TRUE COPY OF THE ARREAR DEMAND NOTICE DATED 12.11.2011 ISSUED BY THE ASSISTANT COMMISSIONER OF INCOME TAX -CPC, BANGALORE TO THE PETITIONER P5: A TRUE COPY OF THE LETTER DATED 18.08.2012 SUBMITTED BY THE PETITIONER TO THE 6TH RESPONDENT REQUESTING FOR A LETTER SHOWING THE ERROR WHICH HAD OCCURRED P6: A TRUE COPY OF THE LETTER DATED 18.08.2012 ISSUED BY THE 6TH RESPONDENT TO THE 1ST RESPONDENT P7: A TRUE COPY OF THE LETTER ISSUED BY THE PETITIONER TO THE 6TH RESPONDENT BANK P8: A TRUE COPY OF THE APPLICATION SUBMITTED BY THE 6TH RESPONDENT BANK TO THE 1ST RESPONDENT DATED 27.01.2014 P9: A TRUE COPY OF THE NOTICE DATED 12.06.2015 ISSUED BY THE 2ND RESPONDENT TO THE PETITIONER DEMANDING RS.1,94,697/- IN RESPECT OF ASSESSMENT YEAR 2008-2009 P10: A TRUE COPY OF THE APPLICATION /REQUEST DATED 24.06.2015 SUBMITTED BY THE PETITIONER TO THE 2ND RESPONDENT WP(C).No. 2515 of 2016 (L) P11: A TRUE COPY OF THE COMMUNICATION BEARING NO.OBO(T) NO.10219/CTS/02110/2013-14 ISSUED BY THE 7TH RESPONDENT TO THE PETITIONER RESPONDENT(S)' EXHIBITS : NIL. //TRUE COPY// P.A. TO JUDGE bp A.M.SHAFFIQUE, J * * * * * * * * * * * * W.P.C.No.2515 of 2016 ---------------------------------------- Dated this the 3rd day of November 2016 J U D G M E N T Petitioner has approached this Court seeking for a direction to the respondents to give credit to the petitioner for the amounts covered by Ext.P3. It seems that the petitioner had remitted Rs.1,65,000/- in the account of the Income Tax Department. 2. The complaint of the petitioner is that despite payment, no adjustment has been made in the account of the petitioner in the Income Tax Department. Petitioner later came to know that the respective Bank namely the State Bank of Travancore had remitted the said amount in Pan No.AAQFS8396B instead of AAGFS8396B in the system. Petitioner therefore approached the Income Tax Officer through the Bank to effect necessary adjustments. In the meantime, petitioner was served with Ext.P9 indicating that an amount of Rs.1,94,697/- is outstanding against the petitioner during the assessment year 2008-2009. The petitioner filed a complaint before the Banking Ombudsman which came to be rejected as the matter does not come within the ambit of the Ombudsman. Hence this writ W.P.C.No.2515/2016 2 petition is filed. 3. Statement is filed by the learned Standing Counsel appearing for the 2nd respondent wherein it is stated that for the assessment year 2008-2009, the assessee declared the total income at Rs.5,09,370/- in the return the assessee claimed prepaid tax (advance tax) of Rs.1,65,000/-. The Return was processed under Section 143(1) on 19/11/2009, resulting a demand of Rs.1,94,697/-. It is stated that as per the Pan Number available in the AST, it is seen that the Pan No.AAQFS8396B belongs to M/s.Swastik Paddy Processing, Kamal Traders, Mauhapali, Ganj Bazar, Madhya Pradesh and the Pan is presently lying with the Income Tax Officer, Ward-I, Raigarh. It is stated that the Income Tax Officer, Thiruvalla had communicated the matter to Income Tax Officer, Raigarh on 17/06/2014 and 28/07/2015. It is stated that correction is possible only if the PAN is transferred to Assistant Commissioner of Income Tax Circle-I, Thiruvalla. 4. In so far as the amount is still available with the Income Tax Officer, Raigarh, I am of the view that the writ petition can be disposed of as under: W.P.C.No.2515/2016 3 i) The 3rd respondent shall transfer a sum of Rs.1,65,000/- (Rupees one lakh sixty five thousand only) which is received as per Pan No.AAQFS8396B to the 1st respondent to be adjusted to the Pan No.AAGFS8396B, which shall be done within a period of one month from the date of receipt of a copy of the judgment. ii) On receipt of the said amount, the 1st respondent shall make necessary adjustments in respect of the tax payable by the petitioner. 1st respondent shall forward a copy of the judgment to the 3rd respondent for compliance. iii) Any recovery steps against the petitioner for the aforesaid assessment year shall be kept in abeyance until such adjustment. (sd/-) (A.M.SHAFFIQUE, JUDGE) jsr "