Allowed

M/S. Shah Enterprises v. Income Tax Officer

Kerala HC3 Nov 2016WP(C)/2515/2016

Case brief

AI extract

What is this about?

Petitioner approached High Court seeking credit for remitted tax amount due to erroneous PAN usage by bank. Court directed Income Tax Officer Raigarh to transfer funds to correct account, Commissioner to make necessary adjustments and stay recovery proceedings.

What did the court decide?

Directed 3rd respondent to transfer Rs.1,65,000 to 1st respondent within one month for adjustment. Stayed recovery steps. 1st respondent to make necessary adjustments.

M/S. Shah Enterprises Vs Income Tax Officer — Kerala HC (2016) — LawSathi Research

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IN THE HIGH COURT OF KERALA AT ERNAKULAM

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PRESENT:

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THE HONOURABLE MR.JUSTICE A.M.SHAFFIQUE

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THURSDAY, THE 3RD DAY OF NOVEMBER 2016/12TH KARTHIKA, 1938

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WP(C).No. 2515 of 2016 (L)

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PETITIONER(S):

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M/S. SHAH ENTERPRISES H.O.MAIN JUNCTION, CHANGANACHERRY, KOTTAYAM DISTRICT, KERALA 686101, REPRESENTED BY H. MUZAMMIL, MANAGING PARTNER

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BY ADVS.SRI.K.M.FIROZ

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SMT.M.SHAJNA SRI.S.KANNAN SMT.UMMUL FIDA

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RESPONDENT(S):

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1. INCOME TAX OFFICER WARD II, THIRUVALLA, OFFICE OF THE INCOME TAX OFFICER, CIRCLE I, THIRUVALLA KOTTAYAM DISTRICT 689101

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2. THE ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE I, THIRUVALLA, OFFICE OF THE ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE I, THIRUVALLA, KOTTAYAM DISTRICT 689101

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3. INCOME TAX OFFICER WARD NO. I, RAIGARH, CHATTISGARH

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4. THE PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX KERALA OFFICE OF THE PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX, 2ND FLOOR, CENTRAL REVENUE BUILDING, IS PRESS ROAD, ERNAKULAM 682018

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5. RINCIPAL DIRECTOR GENERAL OF INCOME TAX ( ADMINISTRATION)ROOM NO.501, MAYUR BHAWAN, CONNAUGHT CIRCUS, NEW DELHI

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WP(C).No. 2515 of 2016 (L)

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6. THE STATE BANK OF TRAVANCORE MAIN BRANCH, CHANGANACHERRY, KOTTAYAM DISTRICT 689101, REPRESENTED BY ITS CHIEF MANAGER

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7. BANKING OMBUDSMAN

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OFFICE OF THE BANKING OMBUDSMAN, RESERVE BANK OF INDIA, THIRUVANANTHAPURAM 695033

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R1 R2 & R4 BY ADV. SRI.P.K.R.MENON,SC, BY ADV. SRI.JOSE JOSEPH, SC, R3 BY ADV. SRI.SYAM J SAM BY SRI.K.M.V.PANDALAI, INCOME TAX DEPARTMENT R6 BY SRI.R.S.KALKURA, SC, SBT BY SRI.MATHEWS J.NEDUMPARA

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THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 03-11-2016, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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WP(C).No. 2515 of 2016 (L)

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APPENDIX

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PETITIONER(S)' EXHIBITS

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P1:	A TRUE COPY OF THE PANCARD OF THE PETITIONER BEARING PAN NO. AAGFS 8396 B ISSUED BY COMMISSIONER OF INCOME TAX, TRIVANDRUM
P2:	A TRUE COPY OF THE CLARIFICATION LETTER F.NO.385/12/77-IT (B) DATED 31.03.1977 ISSUED BY INCOME TAX DEPARTMENT IN WHCIH CIRCULAR NO. 3 DATED 11.02.1969 EXTRATED
P3:	A TRUE COPY OF THE CHELLAN BEARING SERIAL NO.98 EVIDENCING THE REMITTANCE OF RS.1,65,000/- BY THE PETITIONER TO THE 6TH RESPONDENT TOWARDS INCOME TAX
P3 A:	A TRUE COPY OF THE CHELLAN BEARING SERIAL NO.98 EVIDENCING THE REMITTANCE OF RS.15,000/- BY THE PETITIONER TO THE 6TH RESPONDET TOWARDS FRINGE BENEFIT TAX
P4:	A TRUE COPY OF THE ARREAR DEMAND NOTICE DATED 12.11.2011 ISSUED BY THE ASSISTANT COMMISSIONER OF INCOME TAX -CPC, BANGALORE TO THE PETITIONER
P5:	A TRUE COPY OF THE LETTER DATED 18.08.2012 SUBMITTED BY THE PETITIONER TO THE 6TH RESPONDENT REQUESTING FOR A LETTER SHOWING THE ERROR WHICH HAD OCCURRED
P6:	A TRUE COPY OF THE LETTER DATED 18.08.2012 ISSUED BY THE 6TH RESPONDENT TO THE 1ST RESPONDENT
P7:	A TRUE COPY OF THE LETTER ISSUED BY THE PETITIONER TO THE 6TH RESPONDENT BANK
P8:	A TRUE COPY OF THE APPLICATION SUBMITTED BY THE 6TH RESPONDENT BANK TO THE 1ST RESPONDENT DATED 27.01.2014
P9:	A TRUE COPY OF THE NOTICE DATED 12.06.2015 ISSUED BY THE 2ND RESPONDENT TO THE PETITIONER DEMANDING RS.1,94,697/- IN RESPECT OF ASSESSMENT YEAR 2008-2009
P10:	A TRUE COPY OF THE APPLICATION /REQUEST DATED 24.06.2015 SUBMITTED BY THE PETITIONER TO THE 2ND RESPONDENT

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WP(C).No. 2515 of 2016 (L)

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P11: A TRUE COPY OF THE COMMUNICATION BEARING NO.OBO(T) NO.10219/CTS/02110/2013-14 ISSUED BY THE 7TH RESPONDENT TO THE PETITIONER

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RESPONDENT(S)' EXHIBITS : NIL.

//TRUE COPY//

P.A. TO JUDGE

**A.M.SHAFFIQUE, J * * * * * * * * * * * *** W.P.C.No.2515 of 2016

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Dated this the 3^rd day of November 2016

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J U D G M E N T

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Petitioner has approached this Court seeking for a direction to the respondents to give credit to the petitioner for the amounts covered by Ext.P3. It seems that the petitioner had remitted Rs.1,65,000/- in the account of the Income Tax Department.

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The complaint of the petitioner is that despite

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payment, no adjustment has been made in the account of the petitioner in the Income Tax Department. Petitioner later came to know that the respective Bank namely the State Bank of Travancore had remitted the said amount in Pan No.AAQFS8396B instead of AAGFS8396B in the system. Petitioner therefore approached the Income Tax Officer through the Bank to effect necessary adjustments. In the meantime, petitioner was served with Ext.P9 indicating that an amount of Rs.1,94,697/- is outstanding against the petitioner during the assessment year 2008-2009. The petitioner filed a complaint before the Banking Ombudsman which came to be rejected as the matter does not come within the ambit of the Ombudsman. Hence this writ

W.P.C.No.2515/2016

petition is filed.

Statement is filed by the learned Standing Counsel appearing for the 2^nd respondent wherein it is stated that for the assessment year 2008-2009, the assessee declared the total income at Rs.5,09,370/- in the return the assessee claimed prepaid tax (advance tax) of Rs.1,65,000/-. The Return was processed under Section 143(1) on 19/11/2009, resulting a demand of Rs.1,94,697/-. It is stated that as per the Pan Number available in the AST, it is seen that the Pan No.AAQFS8396B belongs to M/s.Swastik Paddy Processing, Kamal Traders, Mauhapali, Ganj Bazar, Madhya Pradesh and the Pan is presently lying with the Income Tax Officer, Ward-I, Raigarh. It is stated that the Income Tax Officer, Thiruvalla had communicated the matter to Income Tax Officer, Raigarh on 17/06/2014 and 28/07/2015. It is stated that correction is possible only if the PAN is transferred to Assistant Commissioner of Income Tax Circle-I, Thiruvalla.

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In so far as the amount is still available with the Income Tax Officer, Raigarh, I am of the view that the writ petition can be disposed of as under:

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W.P.C.No.2515/2016

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i) The 3^rd respondent shall transfer a sum of Rs.1,65,000/- (Rupees one lakh sixty five thousand only) which is received as per Pan No.AAQFS8396B to the 1^st respondent to be adjusted to the Pan No.AAGFS8396B, which shall be done within a period of one month from the date of receipt of a copy of the judgment.

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ii) On receipt of the said amount, the 1^st respondent shall make necessary adjustments in respect of the tax payable by the petitioner. 1^st respondent shall forward a copy of the judgment to the 3^rd respondent for compliance.

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iii) Any recovery steps against the petitioner for the aforesaid assessment year shall be kept in abeyance until such adjustment.

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(sd/-)

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(A.M.SHAFFIQUE, JUDGE)

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jsr

M/S. Shah Enterprises v. Income Tax Officer

Case brief

What is this about?

What did the court decide?

M/S. Shah Enterprises v. Income Tax Officer

Case brief

What is this about?

What did the court decide?

What the court decided

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Statutes considered

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