M/S.TCM LTD V. UNION OF INDIA

WP(C)/18134/2017

AI Insights

The case involves M/S. TCM Ltd., the petitioner, who approached the Kerala High Court seeking relief from recovery steps initiated by the respondents for arrears of income tax and interest. The primary relief sought was the option to pay the dues in installments. The respondents included the Union of India represented by the Secretary of the Department of Revenue, the Tax Recovery Officer (Corporate) of the Income Tax Department, and several banks and companies involved in the financial transactions with the petitioner. After considering the submissions and the circumstances, the court decided to allow the petitioner to pay the dues in installments, providing a temporary relief from immediate recovery actions.

• Counselvise Citation: [2017] 140 COUNSELVISE.COM (IT) 678185 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 19-06-2017
• Assessment Year: misc
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: RAJAGOPALAN K R; N NAGRESH; JOSE JOSEPH; P ANTONY; K M ANEESH
• Assessee Lawyers: C K KARUNAKARAN; JOPHY KANDANKARY
• Keywords: Garnishee notices; Income Tax; Instalments; Arrears

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HONOURABLE MR. JUSTICE A.K.JAYASANKARAN NAMBIAR MONDAY, THE 19TH DAY OF JUNE 2017/29TH JYAISHTA, 1939 WP(C).No. 18134 of 2017 (N) ---------------------------- PETITIONER : ---------- M/S. TCM LTD., REGD OFFICE:HOUSE # 54/555 \"ELENJIKAL\" MUTTATH LANE, KADAVANTHRA P.O.,COCHIN 682020. BY ADVS.SRI.C.K.KARUNAKARAN SRI.JOPHY POTHEN KANDANKARY RESPONDENTS : ----------- 1. UNION OF INDIA, REP BY SECRETARY DEPARTMENT OF REVENUE MINISTRY OF FINANCE, NEW DELHI 110001. 2. TAX RECOVERY OFFICER (CORPORATE) INCOME TAX DEPARTMENT, ROOM NO.304, CR BUILDING, I.S.PRESS ROAD,ERNAKULAM 682018. 3. MANAGER,AXIS BANK,35/1398, B4 AND C4, PUKALAKATT CITY CENTER & SIVADAS TOWER NEAR ALAPATT REGENCY, M.K.K.MENON ROAD, PALARIVATTOM, KOCHI-682025. 4. MANAGER, CITI BANK N.A RAVI'S ARCADE, PADMA JN. M.G.ROAD, KOCHI-682035. 5. MANAGER,BANK OF BARODA KALAMASSERY BR, ELOOR ROAD, KALAMASSERY, ERNAKULAM DT.683104. WP(C).No. 18134 of 2017 (N) --------------------------- 6. M/S SUNSHIELD CHEMICALS LTD. PHOENIX HOUSE A WING, 4TH FLOOR, 462, SENAPATI BAPAT MARG, LOWER PAREL (W), MUMBAI 400013. 7. M./S. CELEBRUS CAPITAL LTD. 27/540 C, IIIRD FLOOR, EAK TOWERS, MAIN AVENUE, PANAMPILLI NAGAR, COCHIN-682036. R1 BY SRI.RAJAGOPALAN NAIR.K.R., CGC BY SRI.N.NAGARESH, ASG R2 BY SRI.JOSE JOSEPH, SC, R3 BY ADV. SRI.P.PAULOCHAN ANTONY BY SRI.K.M.ANEESH THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 19-06-2017, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: bp WP(C).No. 18134 of 2017 (N) ---------------------------- APPENDIX PETITIONER(S)' EXHIBITS ----------------------- EXHIBIT P1: TRUE COPY OF NOTICE NO.TRO/CORP/KOCHI/226 (3)/2-16-17 DATED 08.05.2017 ISSUED BY THE 2ND RESPONDENT. EXHIBIT P2: TRUE COPY OF 3RD RESPONDENT'S LETTER DATED 09.05.2017 ADDRESSED TO THE PETITIONER. EXHIBIT P3: TRUE COPY OF PETITIONER'S LETTER NO.TCM 423/2017 DATED 15.05.2017 ADDRESSED TO THE 2ND RESPONDENT. EXHIBIT P4: TRUE COPY OF NOTICE NO.TRO/CORP/KOCHI/TCM/2017-18 DATED 12.04.2017 SENT BY THE 2ND RESPONDENT TO THE 4TH RESPONDENT. EXHIBIT P5: TRUE COPY OF 4TH RESPONDENT'S LETTER NO.028-093-390 DATED 21.04.2017 ADDRESSED TO THE 2ND RESPONDENT. EXHIBIT P6: TRUE COPY OF 2ND RESPONDENT'S NOTICE NO.TRO/CORP/KOCHI/TCM/2017-18 DATED 12.04.2017 ADDRESSED TO THE 5TH RESPONDENT. EXHIBIT P7: TRUE COPY OF 2MD RESPONDENT'S NOTICE NUMBER TRO(CORP)/KOCHI/TCM/ITCP-4/2017-18 DATED 02.05.2017 ADDRESSED TO THE 6TH RESPONDENT. EXHIBIT P8: TRUE COPY OF 2ND RESPONDENT'S NOTICE NUMBER TRO(CORP)/KOCHI/TCM/ITCP-4/2017-18 DATED 15.05.2017 ADDRESSED TO THE 7TH RESPONDENT. RESPONDENT(S)' EXHIBITS : NIL. //TRUE COPY// P.A. TO JUDGE bp A.K.JAYASANKARAN NAMBIAR, J. ............................................................. W.P.(C).No.18134 of 2017 ............................................................. Dated this the 19th day of June, 2017 J U D G M E N T The petitioner has approached this Court aggrieved by recovery steps initiated by the respondents for recovery of amounts due from the petitioner by way of arrears of income tax and interest thereon. The limited prayer of the petitioner at this stage is for the grant of facility of instalments to discharge its liability. 2. I have heard the learned counsel appearing for the petitioner as also the learned Standing counsel for the Income Tax Department. 3. On a consideration of the facts and circumstances of the case and the submissions made across the bar, I dispose the writ petition with the following directions: i. If the petitioner discharges the liability indicated in Ext.P1` notice, together with interest thereon, in 8 equal successive monthly instalments -2- W.P.(C).No.18134 of 2017 commencing from 10.07.2017, then further proceedings pursuant to Ext.P1, P4, P6, P7 and P8 shall be kept in abeyance. ii. It is made clear that if the petitioner defaults in any single instalment he will lose the benefit of this judgment and the respondent Income tax Authority will be free to continue with the proceedings for recovery from the stage at which they presently stand. iii. It is further made clear that so long as the petitioner complies with the directions in this judgment with regard to payment in instalments, the respondents shall permit the petitioner to operate the bank accounts that are covered by the garnishee notices referred to above. Sd/- A.K.JAYASANKARAN NAMBIAR JUDGE mns/19.06.17 "