V.M.MATHAI V. PRINCIPAL COMMISSIONER OF INCOME TAX

WP(C)/18551/2017

AI Insights

The case involves V.M. Mathai, the petitioner, who approached the High Court of Kerala seeking relief against an order (Ext.P8) from the Principal Commissioner of Income Tax, Kochi, which rejected his application for a waiver of interest on delayed tax payments under Section 220(2) of the Income Tax Act. The petitioner had previously been issued demand notices and an order of attachment by the Tax Recovery Officer for unpaid tax amounts. After the court's intervention, the petitioner made the required tax payments. The court, acknowledging the payment, directed the 1st respondent to reconsider the waiver of interest, emphasizing that the payments should be applied to the tax liability rather than the interest.

• Counselvise Citation: [2017] 140 COUNSELVISE.COM (IT) 755422 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 12-07-2017
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: K M V PANDALAI
• Assessee Lawyers: BECHU KURIAN THOMAS; PAUL JACOB; ENOCH DAVID SIMON JOEL
• Keywords: Attachment Order; Demand notice; Income Tax; Tax Recovery; Waiver of interest
• Section: 220(2)

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HONOURABLE MR. JUSTICE A.K.JAYASANKARAN NAMBIAR WEDNESDAY, THE 12TH DAY OF JULY 2017/21ST ASHADHA, 1939 WP(C).No. 18551 of 2017 (T) ---------------------------- PETITIONER(S): ----------------------- V.M. MATHAI, VEMBILLIL HOUSE, PALACE GARDEN, MANIMALA ROAD, EDAPALLY, KOCHI - 682 024. BY SRI.BECHU KURIAN THOMAS, SENIOR ADVOCATE. ADVS. SRI.PAUL JACOB, SRI.ENOCH DAVID SIMON JOEL. RESPONDENT(S): ------------------------- 1. PRINCIPAL COMMISSIONER OF INCOME TAX, KOCHI -2, DEPARTMENT OF INCOME TAX, CENTRAL REVENUE BUILDING, I.S. PRESS ROAD, KOCHI - 682 018. 2. TAX RECOVERY OFFICER, KOCHI -2, DEPARTMENT OF INCOME TAX, CENTRAL REVENUE BUILDING, I.S. PRESS ROAD, KOCHI - 682 018. BY SRI.K.M.V.P ANDALAI, SC. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 12-07-2017, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: rs. WP(C).No. 18551 of 2017 (T) APPENDIX PETITIONER'S EXHIBITS:- EXHIBIT P1 TRUE COPY OF THE DEMAND NOTICE DTD. 26.12.2002 ISSUED BY THE 2ND RESPONDENT FOR AN AMOUNT OF RS. 7,92,966/-. EXHIBIT P1(A) TRUE COPY OF THE DEMAND NOTICE DTD. 26.12.2002 ISSUED BY THE 2ND RESPONDENT FOR AN AMOUNT OF RS. 3,55,322/-. EXHIBIT P2 TRUE COPY OF THE ORDER OF ATTACHMENT DATED 13/01/2003 ISSUED BY THE 2ND RESPONDENT. EXHIBIT P3 TRUE COPY OF THE LETTER DTD.10.04.2013 SUBMITTED BY THE PETITIONER TO THE 2ND RESPONDENT. EXHIBIT P4 TRUE COPY OF THE NOTICE DTD.10.12.2015 ISSUED BY THE 2ND RESPONDENT TO THE PETITIONER. EXHIBIT P5 TRUE COPY OF THE PETITION DTD.15.01.2016 SUBMITTED BY THE PETITIONER BEFORE THE 1ST RESPONDENT EXHIBIT P6 TRUE COPY OF THE ORDER DTD.13.05.2016 WITH FILE NO. CIT-2/CHN/TECH/WAIVER/220/15-16 ISSUED BY THE 1ST RESPONDENT. EXHIBIT P7 TRUE COPY OF THE JUDGMENT DTD.10.08.2016 IN W.P(C) 20210/2016 ON THE FILES OF THIS HON'BLE COURT. EXHIBIT P8 TRUE COPY OF THE ORDER DTD.07.11.2016 ISSUED BY THE 1ST RESPONDENT DTD. 07.11.2016 ISSUED BY THE 1ST RESPONDENT. EXHIBIT P9 TRUE COPY OF THE CERTIFICATE DATED 07.12.2016 ISSUED BY THE KUSUMAGIRI MENTAL HOSPITAL CENTRE RELATING TO PETITIONER'S WIFE, SMT. RUBY MATHAI. EXHIBIT P9(A) TRUE COPY OF THE CERTIFICATE DATED 08.12.2016 ISSUED BY LOURDES HOSPITAL RELATING TO THE PETITIONER. EXHIBIT P10 TRUE COPY OF THE 4 DEMAND DRAFTS DATED 05/07/2017 CONTAINING THE ACKNOWLEDGMENT BY THE TAX RECOVERY OFFICER. RESPONDENT'S EXHIBITS:- NIL. //TRUE COPY// P.S. TO JUDGE rs. A.K.JAYASANKARAN NAMBIAR, J. ------------------------------- W.P.(C).NO.18551 OF 2017 (T) ----------------------------------- Dated this the 12th day of July, 2017 J U D G M E N T The petitioner has approached this Court aggrieved by Ext.P8 order passed by the 1st respondent, rejecting an application submitted by the petitioner seeking waiver of interest under Section 220 (2) of the Income Tax Act. 2. When the matter came up for admission, this Court had, taking note of the observations in Ext.P8 order, directed the petitioner to effect payment of tax amounts outstanding within a specified period, and it is stated by the learned senior counsel for the petitioner, and acknowledged by the learned Standing counsel for the respondents, that the tax amount of Rs.11,38,643/- has now been paid through four demand drafts produced as Ext.P10 along with I.A.No.10753/2017. Taking note of the said payment effected by the petitioner, I am of the view that the 1st respondent can be directed to consider the issue of waiver of the interest, afresh, in the light of the statutory provisions, taking note of the payments subsequently made W.P.(C).No.18551/2017 2 by the petitioner. To enable the 1st respondent to do so, I quash Ext.P8 order, and direct the 1st respondent to pass fresh orders in the matter, after hearing the petitioner, within two months from the date of receipt of a copy of this judgment. While passing orders as directed, the 1st respondent shall ensure that the payments now effected by the petitioner, pursuant to the directions from this Court, are credited towards the tax liability and not to the interest component, and the consideration by the 1st respondent, pursuant to the directions of this Court, shall be only with regard to the waiver of the interest component that is shown in Ext.P8 order. The petitioner shall produce a copy of the writ petition together with a copy of this judgment, before the 1st respondent, for further action. The writ petition is disposed as above. A.K.JAYASANKARAN NAMBIAR JUDGE prp/12/7/17 "