SHRI.M.R.SOMARAJAN V. THE COMMISSIONER OF INCOME TAX, KOTTAYAM

ITA/1127/2009

AI Insights

The case involves Shri M.R. Somarajan of Amba Rubber Industries, who appealed against the orders of the Income Tax Appellate Tribunal, Cochin Bench. The appeals were related to the assessment years 1997-98 and 1998-99, where the assessments were based on revised returns filed by the assessee following a survey and subsequent statement recorded by the department. The primary legal issue was the maintainability of the appeals in the absence of payment of admitted tax as mandated by Section 249(4) of the Income Tax Act. The assessee argued that the revised returns were filed under compulsion and not voluntarily, which was contested by the department.

• Counselvise Citation: [2010] 140 COUNSELVISE.COM (IT) 700939 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 11-01-2010
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Revenue
• Court: HIGH COURT
• Department Lawyers: JOSE JOSEPH
• Assessee Lawyers: P BALAKRISHNAN; K C KIRAN
• Keywords: Assessment; Income tax appeal; Non-payment of admitted tax; Poverty; Revised return
• Section: 249(4); 140A

Judgement Text

" IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE V.K.MOHANAN MONDAY, THE 11TH JANUARY 2010 / 21TH POUSHA 1931 ITA.No. 1127 of 2009() ---------------------- ITA.1178/COCH/2005 of I.T.A.TRIBUNAL,COCHIN BENCH .................... APPELLANT/APPELLANT: --------------------------------------- SHRI.M.R.SOMARAJAN, AMBA RUBBER INDUSTRIES, THAMPALAKKADU,KANJIRAPALLY. BY ADV. SRI.P.BALAKRISHNAN (E) SRI.K.C.KIRAN RESPONDENT/RESPONDENT ------------------------- THE COMMISSIONER OF INCOME TAX,KOTTAYAM. ADV. SRI.JOSE JOSEPH, SC, FOR INCOME TAX THIS INCOME TAX APPEAL HAVING BEEN FINALLY HEARD ALONG WITH ITA NO.1173/2009 ON 11/01/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.N.RAMACHANDRAN NAIR & V.K.MOHANAN, JJ. .................................................................... I.T. Appeal Nos.1127 & 1173 of 2009 .................................................................... Dated this the 11th day of January, 2010. JUDGMENT Ramachandran Nair, J. The connected appeals are filed by the assessee challenging the orders of the Tribunal which held that C.I.T.(Appeal) rightly rejected the appeal for 1997-98 and 1998-99 on account of non-payment of admitted tax in terms of Section 249(4) of the Income Tax Act. We have heard Adv. Sri.P.Balakrishnan appearing for the appellant and Standing Counsel appearing for the respondent. 2. It is seen that assessments were completed based on revised return filed by the assessee on 18.2.2000 declaring an income of Rs.17,96,000/- for 1997-98 and Rs.26,02,930/- for 1998-99. A survey was conducted in the assessee's premises on 5.8.1998 and on 6.8.1998 a statement was recorded wherein assessee offered to declare specified amount of income for both the years of assessments. The returns in terms of the offer of the assessee was made in fact after one year from the date of search and the assessments are seen completed accepting the 2 income so returned. The assessee thereafter filed appeals before the C.I.T.(Appeals) stating that assessee had prior to taking up of assessments filed detailed letter on 20.1.2001 and revised returns were also filed on 23.1.2001 stating that the revised returns earlier filed were not voluntary and true, but were under compulsion by the departmental officers. However, we notice from the assessment orders that no objection is made in the course of assessment against completion of assessment based on income returned by assessee, even though assessee himself along with the Chartered Accountant was present. The assessee in fact had not made payment of any tax under Section 140A or based on assessment. Counsel appearing for the appellant submitted that the appellant is in absolute poverty and he could not remit any tax. In any case the appeals are filed without payment of tax admitted in the return and so much so, C.I.T.(Appeal) as well as the Tribunal rightly found that appeals are not maintainable for non- payment of admitted tax by virtue of Section 249(4) of the Income Tax Act. We do not find any justification to deviate from the view taken by the lower authorities. Consequently we dismiss the appeals. If the 3 appellant is in absolute poverty, then it is for the appellant to approach the concerned authorities for atleast waiver of interest and other charges and for settlement of liability on remittance of tax. C.N.RAMACHANDRAN NAIR Judge V.K.MOHANAN Judge pms "