M/ S SREEVALSAM JEWELLERS V. ASSISTANT COMMISSIONER OF INCOME TAX

WP(C)/31272/2022

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M/s Sreevalsam Jewellers approached the Kerala High Court seeking relief to extend the time for payment of an assessed income tax amount for the year 2018-2019, which totaled Rs.1,08,53,047. The assessment was made under Section 147 of the Income Tax Act. The petitioner argued that they had already made a partial payment of Rs.10,00,000 following an interim order and had submitted a petition to the Recovery Officer, which they claimed should be considered as compliance with Section 220(3) of the Income Tax Act. The respondent department contended that no formal application for extension of time was made under Section 220(3), thus no relief could be granted.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 750522 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 20-10-2022
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: JOSE JOSEPH
• Assessee Lawyers: S MUHAMMED HANEEFF; DIVYA RAVINDRAN; M H ASIF ALI
• Keywords: Income tax assessment; Revenue Recovery Proceedings; Payment Installments
• Section: 147; 220(3)

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE GOPINATH P. THURSDAY, THE 20TH DAY OF OCTOBER 2022 / 28TH ASWINA, 1944 WP(C) NO. 31272 OF 2022 PETITIONER: M/ S SREEVALSAM JEWELLERS GROUND FLOOR SREE VALSOM BUILDING ,MC ROAD, PANDALAM, PATHANAMTHITTA KERALA, PIN – 689 501. REPRESENTED BY ITS MANAGING PARTNER -VARUN RAJ BY ADVS. S.MUHAMMED HANEEFF DIVYA RAVINDRAN M.H.ASIF ALI RESPONDENTS: 1 ASSISTANT COMMISSIONER OF INCOME TAX CENTER CIRCLE, AAYAKAR BHAVAN, KARBALA JUNCTION, KOLLAM, PIN – 691 001. 2 THE TAX RECOVERY OFFICER (CENTRAL) KANDAMKULATHY TOWERS OPP. MAHARAJA'S COLLEGE GROUND M.G ROAD, KOCHI, PIN – 682 011. 3 THE PRINCIPAL COMMISSIONER OF INCOME TAX (CENTRAL) KANDAMKULATHY TOWERS OPP. MAHARAJA'S COLLEGE GROUND M.G ROAD, KOCHI-682011, PIN – 682 011. OTHER PRESENT: ADV. JOSE JOSEPH (SC) THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 20.10.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C)No.31272/2022 2 JUDGMENT The petitioner has approached this Court seeking a limited relief. The petitioner has been assessed to Income Tax for the assessment year 2018-2019, for a sum of Rs.1,08,53,047/- (One Crore Eight Lakhs Fifty Three Thousand and Forty Seven Rupees Only). The assessment was completed under Section 147 of the Income Tax Act. The petitioner only prays for some time to pay off the amounts due under the order of assessment. 2. The learned Standing Counsel appearing for the respondent department would submit that under the provisions of the Income Tax Act, the assessing officer can grant time for payment by an application is made as provided in Section 220(3) and since no such application has been made, the petitioner is not entitled to any relief. 3. The learned counsel appearing for the petitioner submits that the petitioner has filed a petition before the Recovery Officer with a copy to the assessing officer and this should be treated as sufficient compliance of the provisions of Section 220(3) of the Income Tax Act. It is also W.P.(C)No.31272/2022 3 pointed out that pursuant to the interim order dated 30-09-2022, the petitioner has already remitted a sum of Rs.10,00,000/-( Rupees Ten Lakhs Only). 4. Having heard the learned counsel appearing for the petitioner and the learned Standing Counsel appearing for the respondent department, this Writ Petition is disposed of permitting the petitioner to pay the balance of the amounts due under Ext.P1 order of assessment in six equal monthly installments commencing from 30-11-2022. The first installment shall be paid on or before 30-11-2022 and the subsequent installments which shall be paid on or before the 30th day of the succeeding months. The petitioner will also be liable to pay such interest as may be demanded by the department on the amounts due from the petitioner. The writ petition is disposed of as above. Sd/- GOPINATH P. JUDGE ats W.P.(C)No.31272/2022 4 APPENDIX OF WP(C) 31272/2022 PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF THE ASSESSMENT ORDER ALONG WITH DEMAND NOTICE DATED 24.03.2022 PASSED UNDER SECTION 147 OF THE ACT BY THE 1ST RESPONDENT Exhibit P2 TRUE COPY OF THE NOTICE ISSUED BY THE 1ST RESPONDENT DATED 19.7.2022, INITIATING REVENUE RECOVERY PROCEEDINGS ExhibitP3 TRUE COPY OF THE LETTER DATED 26.09.2022, SUBMITTED BY THE PETITIONER BEFORE THE 2ND RESPONDENT FOR A.Y.2018-19 "