THIRUNAVAYA GRAMA PANCHAYATH V. INCOME TAX OFFICER, (TDS)

WP(C)/1461/2015

AI Insights

The case involves Thirunavaya Grama Panchayath, the petitioner, who approached the High Court of Kerala seeking relief against notices issued by the Income Tax Officer (TDS), the first respondent, which demanded penalty payments under the Income Tax Act. The petitioner argued that due to financial constraints, it could not comply with the payment demands within the stipulated time, which led to the freezing of its bank accounts and hindered its ability to pay employee wages. The court considered the financial hardship and allowed the petitioner to pay the penalties in installments, thereby suspending further proceedings and the operation of the freezing notice on the bank account.

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 755680 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 15-01-2015
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Revenue
• Court: HIGH COURT
• Department Lawyers: JOSE JOSEPH; DEVAN RAMACHANDRAN
• Assessee Lawyers: C E UNNIKRISHNAN
• Keywords: Financial hardship; Income Tax; Installment facility; Penalty; Writ petition

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HONOURABLE MR. JUSTICE A.K.JAYASANKARAN NAMBIAR THURSDAY, THE 15TH DAY OF JANUARY 2015/25TH POUSHA, 1936 WP(C).No. 1461 of 2015 (G) --------------------------------------- PETITIONER(S): ---------------------- THIRUNAVAYA GRAMA PANCHAYATH, THIRUNAVAYA-676301, MALAPPURAM DISTRICT, REPRESENTED BY THE PRESIDENT IN CHARGE V.MUHAMMED SHERIFF BY ADV. SRI.C.E.UNNIKRISHNAN RESPONDENT(S): ------------------------- 1. INCOME TAX OFFICER, (TDS), AAYAKAR BHAVAN, MANACHIRA, KOZHIKODE-673001. 2. SMT.JASEELA, ASSISTANT ENGINEER, KALLADA IRRIGATION PROJECT, KARUNAGAPPALLY , KOLLAM PUBLIC, THIRUNAVAYA-690518. 3. THE BRANCH MANAGER/HEAD, KERALA GRAMIN BANK, THIRUNAVAYA BRANCH, THIRUNAVAYA-676301. R1 BY SRI.JOSE JOSEPH, SC, FOR INCOME TAX R3 BY SRI.DEVAN RAMACHANDRAN THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 15-01-2015, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: PJ WP(C).No. 1461 of 2015 (G) --------------------------------------- APPENDIX PETITIONERS' EXHIBITS ----------------------------------- P1: COPY OF THE CHELAN EVIDENCING PAYMENT OF TAX DEDUCTED AT SOURCE FOR THE PERIOD 2008-2009 P1(A): COPY OF THE CHELAN EVIDENCING PAYMENT OF TAX DEDUCTED AT SOURCE FOR THE PERIOD 2008-2009 P1(B): COPY OF THE CHELAN EVIDENCING PAYMENT OF TAX DEDUCTED AT SOURCE FOR THE PERIOD 2008-2009 P1(C): COPY OF THE CHELAN EVIDENCING PAYMENT OF TAX DEDUCTED AT SOURCE FOR THE PERIOD 2008-2009 P2: COPY OF THE CHELAN EVIDENCING PAYMENT OF TAX DEDUCTED AT SOURCE FOR THE PERIOD 2009-2010 P2(A): COPY OF THE CHELAN EVIDENCING PAYMENT OF TAX DEDUCTED AT SOURCE FOR THE PERIOD 2009-2010 P2(B): COPY OF THE CHELAN EVIDENCING PAYMENT OF TAX DEDUCTED AT SOURCE FOR THE PERIOD 2009-2010 P2(C): COPY OF THE CHELAN EVIDENCING PAYMENT OF TAX DEDUCTED AT SOURCE FOR THE PERIOD 2000-2010 P3: COPY OF THE LETTER NO.ITO/TDS/CLT/H.GRIEV/2014-2015 DATED 9/12/14 P4: COPY OF THE REPLY DATED 18/12/14 P5: COPY OF THE NOTICE NO.ITNS.27 DATED 18/12/14 P6: COPY OF THE LIST OF EMPLOYEES AGAINST WHOM ACTION IS SOUGHT TO BE TAKEN P7: COPY OF THE SHOW CAUSE NOTICE DATED 26/12/14 ISSUED AGAINST SMT.K.K.MINI. RESPONDENTS' EXHIBITS ------------------------------------- NIL. / TRUE COPY / P.S.TO JUDGE PJ A.K.JAYASANKARAN NAMBIAR, J. ------------------------------- W.P.(C).NO.1461 OF 2015 (G) ----------------------------------- Dated this the 15th day of January, 2015 J U D G M E N T The petitioner is a Panchayat, and in the writ petition, it is aggrieved by Ext.P3 and P5 notices issued to it by the 1st respondent in connection with recovery of penalty amounts that were confirmed on it under the Income Tax Act. It is the case of the petitioner that, while it has not preferred any appeal under the Income Tax Act against the penalty orders, due to financial constraints, it will not be able to honour the payments that are now demanded from it, within the period insisted upon by the 1st respondent. It is also pointed out that, on account of Ext.P5 notice that has been issued freezing the bank accounts of the petitioner, the petitioner is not able to carry on its activities including payment of wages to its employees. In that factual scenario, the limited prayer of the petitioner now, is for the grant of an installment facility for effecting the payments due to the 1st respondent. 2. I have heard Sri.C.E.Unnikrishnan, the learned counsel appearing for the petitioner, Sri.Jose Joseph, the learned Standing counsel appearing for the 1st respondent as also Sri.Devan Ramachandran, the learned counsel appearing for the 3rd respondent. W.P.(C).No.1461/2015 2 On a consideration of the facts and circumstances of the case as also the submissions made across the Bar and also taking into account the plea of financial hardship urged on behalf of the petitioner, I dispose the writ petition with the following directions:- (i) If the petitioner pays an amount of Rs.5,00,000/- on or before 15.2.2015 and thereafter pays the balance amount due under Ext.P3 notice, together with accrued interest, in three equal and successive monthly installments commencing from 15.4.2015, then further proceedings pursuant to Exts.P3 and P5 notices shall be kept in abeyance by the 1st respondent. (ii) The petitioner is permitted to operate the bank account covered by Ext.P5 notice, and the operation of Ext.P5 notice shall stand suspended to that extent for the time being. (iii) It is made clear that if the petitioner commits a default in respect of any of the installments, he will lose the benefit of this judgment and the 1st respondent will be free to continue proceedings against the petitioner from the stage at which they presently stand. A.K.JAYASANKARAN NAMBIAR JUDGE prp "