Disposed

Wilson Mathew (Pan AILPM2852M), v. the Income Tax Officer

Kerala HC15 Mar 2024WP(C)/8559/2020

Case brief

AI extract

What is this about?

Single Judge disposed of a writ petition regarding attachment of properties due to shortfall in tax payment under an interim stay order. The Court directed withdrawal of attachment orders if the petitioner remits 20% of demands pending appeal disposal, relying on CBDT Circulars.

What did the court decide?

Direction to withdraw attachment orders against the petitioner's properties if he remits 20% of the demanded tax by 15.04.2024.

Wilson Mathew (Pan AILPM2852M), Vs the Income Tax… — Writ and Judicial Review | Kerala HC (2024)

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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 GOPINATH P.

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FRIDAY, THE 15TH DAY OF MARCH 2024 / 25TH PHALGUNA, 1945

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WP(C) NO. 8559 OF 2020

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PETITIONER:

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WILSON MATHEW (PAN AILPM2852M),
M/S. KAIRALI CABLE VISION,
P. O. TALIPARAMBA, KANNUR, PIN - 670 141.

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BY ADVS.
 NANDAGOPAL S. KURUP
 A. KUMAR (SR.)(K/529/1992)
 GEORGE MECHERIL
 ADITH KIRAN R.S.(K/003142/2022)
 A. KUMAR (SR.)(K/529/1992)

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RESPONDENTS:

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1THE INCOME TAX OFFICER,
WARD NO.4, KANNUR RANGE, KANNUR,
AAYAKAR BHAVAN, KANNOTHUMCHAL, KANNUR-670 005.

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2 THE COMMISSIONER OF INCOME TAX (APPEALS), KOZHIKODE - 673 001.

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3 THE TAX RECOVERY OFFICER, AAYAKAR BHAVAN, MANANCHIRA, KOZHIKODE. (SOUGHT TO BE IMPLEADED)

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BY ADV.

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 SRI. P. R. AJITH KUMAR – SC

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
15.03.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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WP(C) NO. 8559 OF 2020

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GOPINATH P., J.

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W.P.(C) No. 8559 of 2020

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Dated this the 15^th day of February, 2024

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JUDGMENT

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The petitioner suffered Exhibits P-15 to P-17 orders of assessment for the assessment years 2011-12 to 2015-16, against which the petitioner filed appeals before the 2^nd respondent. The 2^nd respondent issued Exhibit P-28 order on the application for stay directing that the demands shall be remained stayed on the condition that the petitioner remits a total of 15% of the total demands by the 15.03.2020. According to the petitioner, though the petitioner made substantial payments there was some shortfall leading to a situation where the recovery proceedings continued against the petitioner and certain properties of the petitioner came to be attached (see Exhibit P-32).

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Sri. A. Kumar, learned Senior Counsel appearing for the petitioner, instructed by Adv. Nandagopal S. Kurup submits that the attachment of the properties is causing serious prejudice to the petitioner. It is submitted that the petitioner may now be permitted to remit an amount equivalent to 20% of the demands in respect of

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WP(C) NO. 8559 OF 2020

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each of the assessment orders mentioned in Exhibit P-28 and on that condition the attachment over the properties by Exhibit P-32 may be withdrawn. The learned Standing Counsel appearing for the Income Tax Department would submit that the proceedings for attachment of the properties were taken as the petitioner failed to comply with the condition imposed on Exhibit P-28 order. It is submitted that the petitioner was required, in terms of Exhibit P-28 order, to remit an amount equivalent to 15% of the demands by 15.03.2020. It is submitted that even today, there is an admitted short fall and, therefore, the petitioner is not entitled to any relief from this Court.

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The learned Senior Counsel appearing for the petitioner in reply would submit that even in terms of the Circular issued by the Central Board of Direct Taxes, on the petitioner remitting an amount equivalent to 20% of the demands, there is an automatic stay with no further condition. It is submitted that in such circumstances, the petitioner may be permitted to now remit an amount equivalent to 20% of the demands as a condition for stay.

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Having heard the learned Senior Counsel appearing for the petitioner and the learned Standing Counsel appearing for the Income Tax Department, I am of the opinion that this writ petition can be

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WP(C) NO. 8559 OF 2020

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disposed of directing that on the petitioner remitting 20% of the demands raised against the petitioner in respect of the assessment orders for assessment years 2011-12 to 2015-16 (mentioned in Exhibit P-28 order) the orders attaching the properties of the petitioner shall be withdrawn. I am inclined to grant this relief to the petitioner taking into consideration the fact that in terms of the Circulars issued by the Central Board of Direct Taxes, if the petitioner remits a sum equivalent to 20% of the demands, there will be an automatic stay of recovery pending disposal of the appeal.

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In the light of the above, this writ petition will stand disposed of directing that on the petitioner remitting an amount equivalent to 20% of the amounts determined as payable by the petitioner for the assessment years 2011-12 to 2015-16 after giving credit to the amounts already paid, the attachment orders against the immovable properties of the petitioner will stand withdrawn by the Tax Recovery Officer. The benefit of this order shall be available to the petitioner only if he remits the amounts on or before 15.04.2024.

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Sd/GOPINATH P.

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Svn

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WP(C) NO. 8559 OF 2020

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APPENDIX OF WP(C) 8559/2020

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PETITIONER’S EXHIBITS

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`EXHIBIT P1`	`TRUE` `SEIZE` `FIRST`	`COPY` `D BY` `RESP`	`OF THE SUMMONS AND LIST OF DOCUMENTS` `THE INSPECTION TEAM HEADED BY THE` `ONDENT ON 16.03.2015`
`EXHIBIT P2`	`TRUE` `THE P` `THE A`	`COPY` `ETITI` `SSESS`	`OF OBJECTIONS FILED ON 06.10.2016 BY` `ONER TO THE NOTICE FOR RE-OPENING OF` `MENT`
`EXHIBIT P3`	`TRUE` `BY TH`	`COPY` `E PET`	`OF THE REPLY DATED 24.12.2016 FILED` `ITIONER FOR THE YEAR 2011-12`
`EXHIBIT P4`	`TRUE` `29.12` `2011-`	`COPY` `.2016` `12`	`OF THE ASSESSMENT ORDER DATED` `IN RESPECT OF THE ASSESSMENT YEAR`
`EXHIBIT P5`	`TRUE` `MEMOR`	`COPY` `ANDUM`	`OF THE RELEVANT PAGES OF THE APPEAL` `FOR THE ASSESSMENT YEAR 2011-12`
`EXHIBIT P6`	`TRUE` `MEMOR`	`COPY` `ANDUM`	`OF THE RELEVANT PAGES OF THE APPEAL` `FOR THE ASSESSMENT YEAR 2012-13`
`EXHIBIT P7`	`TRUE` `MEMOR`	`COPY` `ANDUM`	`OF THE RELEVANT PAGES OF THE APPEAL` `FOR THE ASSESSMENT YEAR 2013-14`
`EXHIBIT P8`	`TRUE` `MEMOR`	`COPY` `ANDUM`	`OF THE RELEVANT PAGES OF THE APPEAL` `FOR THE ASSESSMENT YEAR 2014-15`
`EXHIBIT P9`	`TRUE` `MEMOR`	`COPY` `ANDUM`	`OF THE RELEVANT PAGES OF THE APPEAL` `FOR THE ASSESSMENT YEAR 2015-16`
`EXHIBIT P10`	`TRUE` `DATED`	`COPY` `26.1`	`OF E-FILING ACKNOWLEDGMENT RECEIPT` `.2017 FOR THE YEAR 2011`
`EXHIBIT P11`	`TRUE` `DATED`	`COPY` `26.1`	`OF E-FILING ACKNOWLEDGMENT RECEIPT` `.2017 FOR THE YEAR 2012`
`EXHIBIT P12`	`TRUE` `DATED`	`COPY` `27.1`	`OF E-FILING ACKNOWLEDGMENT RECEIPT` `.2017 FOR THE YEAR 2013`

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WP(C) NO. 8559 OF 2020

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`EXHIBIT P13`	`TRUE COPY OF E-FILING ACKNOWLEDGMENT RECEIPT` `DATED 02.02.2018 FOR THE YEAR 2014`
`EXHIBIT P14`	`TRUE COPY OF E-FILING ACKNOWLEDGMENT RECEIPT` `DATED 02.02.2018 FOR THE YEAR 2015`
`EXHIBIT P15`	`TRUE COPY OF THE REVISED ORDER PASSED BY THE` `FIRST RESPONDENT ON 4.5.2018 FOR 2011-12`
`EXHIBIT P16`	`TRUE COPY OF THE REVISED ORDER PASSED BY THE` `FIRST RESPONDENT ON 4.5.2018 FOR 2012-13`
`EXHIBIT P17`	`TRUE COPY OF THE REVISED ORDER PASSED BY THE` `FIRST RESPONDENT ON 4.5.2018 FOR 2013-14`
`EXHIBIT P18`	`TRUE COPY OF THE ORDER PASSED ON 18.06.2018 IN` `RESPECT OF 2014-15`
`EXHIBIT P19`	`TRUE COPY OF THE ORDER PASSED ON 18.06.2018 IN` `RESPECT OF 2015-16`
`EXHIBIT P20`	`TRUE COPY OF THE STAY PETITION FILED ON` `06.07.2018 ALONG WITH THE ENDORSEMENT`
`EXHIBIT P21`	`TRUE COPY OF THE NOTICE OF DEMAND ON 15.5.2019` `IN FORM I.T.C.P.I. FOR 2011-12`
`EXHIBIT P22`	`TRUE COPY OF THE NOTICE OF DEMAND ON 15.5.2019` `IN FORM I.T.C.P.I. FOR 2012-13`
`EXHIBIT P23`	`TRUE COPY OF THE NOTICE OF DEMAND ON 15.5.2019` `IN FORM I.T.C.P.I. FOR 2013-14`
`EXHIBIT P24`	`TRUE COPY OF THE NOTICE OF DEMAND ON 15.5.2019` `IN FORM I.T.C.P.I. FOR 2014-15`
`EXHIBIT P25`	`TRUE COPY OF THE NOTICE OF DEMAND ON 15.5.2019` `IN FORM I.T.C.P.I. FOR 2015-16`
`EXHIBIT P26`	`TRUE COPY OF THE DEMAND NOTICE DATED 19.6.2019` `ISSUED BY THE FIRST RESPONDENT`
`EXHIBIT P27`	`TRUE COPY OF JUDGMENT DATED 9.7.2019 IN W.P.(C)` `NO.18666/2019 OF THIS HONOURABLE COURT`

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WP(C) NO. 8559 OF 2020

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`EXHIBIT P28`	`TRUE` `11105` `2017-`	`COPY OF THE` `, 11149, 11` `18`	`ORDER DATED 27.2.2020 IN ITA` `151, 101618, 10620/2016-17,`
`EXHIBIT P29`	`TRUE` `1,16,`	`COPY OF THE C` `310/-, FOR TH`	`HALAN DATED 18.4.2017 FOR RS.` `E YEAR 2011-12`
`EXHIBIT P30`	`TRUE` `RS.5,`	`COPY OF THE` `31,642/-, FOR`	`CHALAN DATED 18.4.2017 FOR` `THE YEAR 2012-13`
`EXHIBIT P31`	`TRUE` `RS.3,`	`COPY OF THE` `69,048/- FOR`	`CHALAN DATED 18.4.2017 FOR` `THE YEAR 2013-14`

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`EXHIBIT P32`	`TRUE COPY OF THE ATTACHMENT` `22.02.2024` `NUMBERED` `ITBA/` `24/1061343758(1) ISSUED BY THE` `OFFICER, KOZHIKODE`	`NOTICE DATED` `COM/F/17/2023-` `TAX RECOVERY`
`EXHIBIT P33`	`TRUE COPY OF THE REPRESEN` `08.03.2024 REFERRED BY ME TO THE` `OFFICER, KOZHIKODE`	`TATION DATED` `TAX RECOVERY`

Wilson Mathew (Pan AILPM2852M), v. the Income Tax Officer

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Wilson Mathew (Pan AILPM2852M), v. the Income Tax Officer

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