M/S.TRANS ASIAN SHIPPING SERVICES (P) LTD V. UNION OF INDIA

WP(C)/23966/2013

AI Insights

The case involves M/S Trans Asian Shipping Services (P) Ltd, the petitioner, contesting the tax liability imposed for the assessment year 2009-10. The petitioner challenged the conditional orders of stay that required a deposit of 50% of the demanded tax amount pending appeal. The High Court of Kerala, considering the uniformity in previous similar cases (for the years 2005-06 and 2008-09), modified the stay conditions to require a deposit of only 1/3rd of the demanded amount. This decision was made to ensure consistency in the judicial approach towards similar tax liability disputes.

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 722428 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 01-10-2013
• Assessment Year: misc
• Other Referred Cases: ITA No. 128 of 2012, ITA No. 129 of 2012
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: JOSE JOSEPH
• Assessee Lawyers: NARESH TAKER; SABU KALLARAMOOOLA
• Keywords: Assessment Year; Conditional order of stay; Deposit; Tax liability
• Section: 143(3); 246A

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HONOURABLE MR.JUSTICE V.CHITA MBARESH TUESDAY, THE 1ST DAY OF OCTOBER 2013/9TH ASWINA, 1935 WP(C).No. 23966 of 2013 (U) -------------------------------------- PETITIONER(S): -------------------------- 1. M/S.TRANS ASIAN SHIPPING SERVICES (P) LTD REGISTERED UNDER THE COMPANIES ACT, 1956, HAVING THEIR REGISTERED OFFICE AT TRANS ASIA CORPORATE PARK, XIV/396C SEAPORT AIRPORT ROAD CHITTETHUKARA, KAKKANAD, COCHIN 682 037 REPRESENTED BY ITS GROUP GENERAL MANAGER MR. WILSON THOMAS BY ADVS. SRI. NARESH TAKER SRI.SABU S.KALLARAMOOLA RESPONDENT(S): ---------------------------- 1. UNION OF INDIA THROUGH MINISTRY OF FINANCE DEPARTMENT OF REVENUE, NORTH BLOCK, NEW DELHI REPRESENTED BY ITS SECRETARY - 110 001 2. THE JOINT COMMISSIONER OF INCOME TAX CIRCLE 4(2), IV FLOOR, CENTRAL REVENUE BUILDING KOCHI - 682 018 3. THE COMMISSIONER OF INCOME TAX CIRCLE 4(2), I FLOOR, CENTRAL REVENUE BUILDING KOCHI - 682 018 4. THE COMMISSIONER OF INCOME TAX (APPEALS) 6TH FLOOR, KERA BHAVAN, S.R.V. H.S. ROAD KOCHI - 682 011 BY SRI.JOSE JOSEPH, SC, FOR INCOME TAX THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 01-10-2013, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: DCS WP(C).No. 23966 of 2013 (U) APPENDIX PETITIONER(S)' EXHIBITS ------------------------------------- EXHIBIT P1- COPY OF THE IMPUGNED ORDER PASSED BY RESPONDENT NO. 4 DATED 27TH SEPTEMNER, 2013 EXHIBIT P2- COPY OF THE ORDER PASSED BY RESPONDENT NO. 4 DATED 3RD MAY, 2012 EXHIBIT P3- COPY OF THE APPEAL, ITA NO. 128 OF 2012 FILED BEFORE THIS HONOURABLE HIGH COURT, WITHOUT ANNEXURES THERETO, FOR ASSESSMENT YEAR 2005-06 EXHIBIT P3(a)- COPY OF THE APPEAL, ITA NO. 129 OF 2012 FILED BEFORE THIS HONOURABLE HIGH COURT, WITHOUT ANNEXURES THERETO, FOR ASSESSMENT YEAR 2008-09 EXHIBIT P4- COPY OF THE ORDER OF STA Y OF THIS HONOURABLE HIGH COURT FOR ASSESSMENT YEARS 2005-06 AND 2008-09 DATED 17TH AUGUST, 2012 EXHIBIT P5- COPY OF THE ORDER OF STA Y OF THIS HONOURABLE HIGH COURT FOR ASSESSMENT YEAR 2008-09 DATED 25TH SEPTEMBER, 2012 EXHIBIT P6- COPY OF STATEMENT OF INCOME FOR ASSESSMENT YEAR 2009-10 EXHIBIT P7- COPY OF THE ASSESSMENT ORDER PASSED UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961 ON 30TH DECEMBER, 2011 EXHIBIT P8- COPY OF THE PROFIT AND LOSS ACCOUNT, WITHOUT SCHEDULES THERETO, ASSESSMENT ORDER PASSED UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961 ON 30TH DECEMBER, 2011 EXHIBIT P9- COPY OF THE APPEAL FILED BEFORE RESPONDENT NO. 4 ON 30TH JANUARY, 2012 UNDER SECTION 246A OF THE INCOME TAX ACT, 1961 EXHIBIT P10- COPY OF THE APPLICATION OF STA Y FILED BEFORE RESPONDENT NO. 4 ON 30TH JANUARY, 2012 EXHIBIT P11- COPY OF THE APPLICATION OF STA Y FILED BEFORE RESPONDENT NO. 4 ON 27TH SEPTEMBER, 2013 EXHIBIT P12- COPY OF THE STA TEMENT SHOWING THE TAX PAY ABLE UNDER THE TONNAGE TAX AS CONTRASTED WITH COMPUTATION UNDER THE GENERAL PROVISIONS OF THE INCOME TAX ACT, 1961 FOR THE ASSESSMENT YEAR 2009-10 RESPONDENT'S EXHIBITS:- NIL /TRUE COPY/ P.A. TO JUDGE DCS V. CHITAMBARESH, J --------------------------------------- W.P.(C). NO. 23966 OF 2013 ---------------------------------------- Dated this the 01st day of October, 2013 JUDGMENT Ext. P1 conditional order of stay extending the time for complying with Ext. P2 conditional order of stay is impugned. Exts. P1 and P2 orders inter alia direct the petitioner to deposit 50% of the amount demanded pending Ext. P9 appeal. The issue relates to the tax liability of the petitioner for the assessment year 2009-10. 2. Common issues arise for consideration in ITA Nos. 128/2012 and 129/2012 on the file of this Court. The same relates to the liability of the petitioner to pay tax for the years 2005-06 and 2008-09. Ext. P4 and P5 orders indicate that the stay was granted on the petitioner depositing 1/3rd of the amount demanded. I feel that an uniform standard can be adopted. W.P.(C). NO. 23966 OF 2013 2 3. A detailed consideration of the merits of this case at this juncture would prejudice the contentions of either parties in the statutory appeals pending. Interest of justice would be met by directing the petitioner to deposit 1/3rd of the amount demanded as a condition for grant of stay for the assessment year 2009-10. The same would be in consonance with Exts. P4 and P5 orders passed in relation to the assessment years 2005-06 and 2008-09. 4. Exts. P1 and P2 orders are modified permitting the petitioner to deposit 1/3rd of the amount demanded. The amount so arrived at has to be deposited within a period of two weeks from today failing which the respondents are entitled to initiate coercive steps. The writ petition is disposed of. Sd/- V. CHITAMBARESH JUDGE DCS "