Steel Industries Kerala Ltd V. Union of India and Central Board of Direct Taxes and Commissioner of Income Tax and Assistant Commissioner of Income Tax and Deputy Commissioner of Income Tax

WP(C)/23425/2016

AI Insights

The case involves M/S. Steel Industries Kerala Ltd, represented by its managing director, challenging the constitutional validity of Section 234E of the Income Tax Act through a writ petition. The respondents included various authorities from the Union of India and the Income Tax Department. The core issue was the legality of notices issued under this section for defaults in tax deductions at source (TDS) for several financial years. The court referenced a previous judgment, M/S. Sarala Memorial Hospital v Union of India and Another, which had already covered the constitutional validity of Section 234E, leading to the quashing of the notices.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 697765 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 08-06-2023
• Assessment Year: misc
• Other Referred Cases: M/S. Sarala Memorial Hospital v Union of India and Another [Manu/KE/4183/2018]
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: S BIJU
• Assessee Lawyers: T M SREEDHARAN; ABRAHAM THARAKAN; DIVYA RAVINDRAN; V P NARAYANAN; VANDANA MENON; V V VARGHESE
• Keywords: Income Tax Act; Constitution validity; Quashed notices
• Section: 234E; 200A

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MRS. JUSTICE ANU SIVARAMAN THURSDAY, THE 8TH DAY OF JUNE 2023 / 18TH JYAISHTA, 1945 WP(C) NO. 23425 OF 2016 PETITIONER: M/S.STEEL INDUSTRIES KERALA LTD SILK NAGAR, ATHANI P O, THRISSUR-680581. REPRESENTED BY ITS MANAGING DIRECTOR, SHRI A AUBID. BY ADVS. SRI.T.M.SREEDHARAN (SR.) SRI.ABRAHAM VARGHESE THARAKAN SMT.DIVYA RAVINDRAN SRI.V.P.NARAYANAN SMT.VANDANA MENON SRI.V.V.VARGHESE RESPONDENTS: 1 UNION OF INDIA REPRESENTED BY SECRETARY, TO GOVERNMENT OF INDIA, FINANCE DEPARTMENT, NEW DELHI-110001. 2 CENTRAL BOARD OF DIRECTO TAXES DEPARTMENT OF REVENUE , MINISTRY OF FINANCE, GOVERNMENT OF INDIA, NEW DELHI-110001. 3 THE COMMISSIONER OF INCOME TAXTDS CENTRAL REVENUE BUILDING , I S PRESS ROAD, ERNAKULAM, COCHIN-682018. 4 THE ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE-(1), AYYAKAR BHAVAN, SAKTHAN THAMPURAN NAGAR, THRISSUR-680001, 5 THE DEPUTY COMMISSIONER OF INCOME TAX CENTRALISED PROCESSING CELL-TDS, AYAKKAR BHAVAN, SECTOR-3, VAISHALI,GHAZIABAD, UTTAR PRADESH-201010. BY ADVS. SRI.S.BIJU, CGC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 08.06.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 23425 OF 2016 2 JUDGMENT Dated this the 8th day of June, 2023 It is submitted by learned counsel appearing on either side that the issue raised herein is with regard to the constitution validity of Section 234E of the Income Tax Act and that the issue stands covered by the judgment reported in M/S.Sarala Memorial Hospital v Union of India and Another [Manu/KE/4183/2018]. In the above view of the matter, the notices impugned hear in so far as which relate for the period from 2011-12 till 1/6/2016 shall stand quashed. This writ petition is ordered accordingly. Sd/- ANU SIVARAMAN JUDGE ska WP(C) NO. 23425 OF 2016 3 APPENDIX OF WP(C) 23425/2016 PETITIONER EXHIBITS EXHIBIT P1. TRUE COPY OF THE STATEMENT SHOWING THE SUMMARY OF INTIMATION U/S.200A OF THE INCOME TAX ACT, 1961. EXHIBIT P2 TRUE COPY OF THE DEFAULT SUMMARY ISSUED BY THE 5TH RESPONDENT FOR THE 3RD QUARTER OF FY- 2012-13 FOR FORM 24Q DATED 13.11.2013. EXHIBIT P2(A) TRUE COPY OF THE INTIMATION ISSUED U/S 200A BY THE 5TH RESPONDENT FOR THE 4TH QUARTER OF FY-2012-13 FOR FORM 24Q DATED 06.10.2013. EXHIBIT P2(B) TRUE COPY OF THE DEFAULT SUMMARY ISSUED BY THE 5TH RESPONDENT FOR THE 4TH QUARTER OF FY- 2013-14 FOR FORM 24Q DATED 26.08.2015. EXHIBIT P2(C) TRUE COPY OF THE DEFAULT SUMMARY ISSUED BY THE 5TH RESPONDENT FOR THE 4TH QUARTER OF FY- 2013-14 FOR FORM 26Q DATED 27.02.2015. EXHIBIT P2(D) TRUE COPY OF THE DEFAULT SUMMARY ISSUED BY THE 5TH RESPONDENT FOR THE 1ST QUARTER OF FY- 2014-15 FOR FORM 24Q DATED 04.08.2014. EXHIBIT P2(E) TRUE COPY OF THE DEFAULT SUMMARY ISSUED BY THE 5TH RESPONDENT FOR THE 1ST QUARTER OF FY- 2014-158 FOR FORM 26Q DATED 19.02.2015. EXHIBIT P2(F) TRUE COPY OF THE DEFAULT SUMMARY ISSUED BY THE 5TH RESPONDENT FOR THE 2ND QUARTER OF FY- 2014-15 FOR FORM 24Q DATED 28.06.2015. EXHIBIT P2(G) TRUE COPY OF THE DEFAULT SUMMARY ISSUED BY THE 5TH RESPONDENT FOR THE 2ND QUARTER OF FY- 2014-15 FOR FORM 26Q DATED 28.06.2015. EXHIBIT P2(H) TRUE COPY OF THE DEFAULT SUMMARY ISSUED BY THE 5TH RESPONDENT FOR THE 3RD QUARTER OF FY- 2014-15 FOR FORM 24Q DATED 28.06.2015. EXHIBIT P2(I) TRUE COPY OF THE DEFAULT SUMMARY ISSUED BY THE 5TH RESPONDENT FOR THE 3RD QUARTER OF FY- 2014-15 FOR FORM 26Q DATED 24.09.2015. EXHIBIT P2(J) TRUE COPY OF THE DEFAULT SUMMARY ISSUED BY THE 5TH RESPONDENT FOR THE 4TH QUARTER OF FY- 2014-15 FOR FORM 24Q DATED 30.06.2015. EXHIBIT P2(K) TRUE COPY OF THE DEFAULT SUMMARY ISSUED BY THE 5TH RESPONDENT FOR THE 4TH QUARTER OF FY- 2014-15 FOR FORM 26Q DATED 11.09.2015. EXHIBIT P2(L) TRUE COPY OF THE DEFAULT SUMMARY ISSUED BY THE 5TH RESPONDENT FOR THE 4TH QUARTER OF FY- 2014-15 FOR FORM 27EQ DATED 11.09.2015. EXHIBIT P2(M) TRUE COPY OF THE DEFAULT SUMMARY ISSUED BY WP(C) NO. 23425 OF 2016 4 THE 5TH RESPONDENT FOR THE 1ST QUARTER OF FY- 2015-16 FOR FORM 24Q DATED 01.08.2015. EXHIBIT P2(N) TRUE COPY OF THE DEFAULT SUMMARY ISSUED BY THE 5TH RESPONDENT FOR THE 1ST QUARTER OF FY- 2015-16 FOR FORM 26Q DATED 11.09.2015. EXHIBIT P3 TRUE COPY OF THE INTERIM ORDER DATED 14.08.2014 IN W.P(C) NO.20493 OF 2014 OF THIS HON'BLE COURT. "