ISPG TECHNOLOGIES INDIA (P) LTD vs. THE COMMISSIONER OF INCOME TAX

ITA/73/2016HC KeralaKLHC01026872201629 June 2016Author: HONOURABLE MR. JUSTICE DAMA SESHADRI NAIDU,HONOURABLE MR.JUSTICE ANTONY DOMINIC4 pages
AI SummaryDismissed

What were the facts?

The assessee, ISPG Technologies India (P) Ltd., filed an appeal before the High Court of Kerala against an order of the Income Tax Appellate Tribunal (ITAT), Cochin Bench. The ITAT's order, dated October 13, 2015, in ITA No. 261/2015, confirmed a penalty levied under Section 271C of the Income Tax Act for the assessment year 2012-2013. The penalty was imposed due to an admitted delay in the remittance of tax deducted at source. The High Court noted that the applicability of Section 273B was also decided against the assessee based on a previous judgment of the same court in ITA No. 90/2015.

What did the High Court hold?

The High Court held that there was an admitted delay in the remittance of tax deducted at source, which attracted the penalty under Section 271C. The court also noted that the applicability of Section 273B was decided against the assessee by virtue of the High Court's own judgment in ITA No. 90/2015. Given these facts, the High Court found no fault with the view taken by the Tribunal and concluded that there was no question of law to be considered in the appeal. Therefore, the appeal was dismissed. The operative direction was the dismissal of the appeal.

What were the issues?

1. Whether the High Court should consider the appeal filed by the assessee against the ITAT's order confirming the penalty under Section 271C for the assessment year 2012-2013. The Assessee's Contention: The assessee is challenging the order of the ITAT which upheld the penalty. The grounds for challenge are not explicitly detailed in the judgment, but the appeal itself signifies a dispute with the penalty confirmation. The Revenue's Contention: The revenue's position, as reflected in the ITAT's order and the High Court's reasoning, is that the penalty under Section 271C is leviable due to the admitted delay in remitting tax deducted at source. The revenue also relies on the High Court's prior judgment in ITA No. 90/2015 regarding the inapplicability of Section 273B.

Which sections of the Income-tax Act were involved?

Section 271C,Section 273B

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HONOURABLE MR.JUSTICE ANTONY DOMINIC & THE HONOURABLE MR. JUSTICE DAMA SESHADRI NAIDU WEDNESDAY, THE 29TH DAY OF JUNE 2016/8TH ASHADHA, 1938 I.T.A.No. 73 of 2016 AGAINST THE ORDER IN ITA 261/2015 of I.T.A.TRIBUNAL, COCHIN BENCH, DATED 13-10-2015 APPELLANT/ASSESSEE: ISPG TECHNOLOGIES INDIA (P) LTD. 28/118A, PARAPALLIL LANE, PANAMPALLY NAGAR, COCHIN-682 036. BY ADVS.SRI.K.J.ABRAHAM SRI.NIKHIL JOHN RESPONDENT/REVENUE: THE COMMISSIONER OF INCOME TAX C.R.BUILDINGS, I.S.PRESS ROAD, COCHIN-682 018. R BY P.K.R.MENON, SC FOR INCOME TAX THIS INCOME TAX APPEAL HAVING COME UP FOR ADMISSION ON 29-06-2016, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: I.T.A.No.73 of 2016 APPENDIX PETITIONER'S ANNEXURES: ANNEXURE A: TRUE COPY OF THE ORDER IMPOSING PENALTY UNDER SECTION 271C DATED 12.9.2012 ISSUED BY THE JOINT COMMISSIONER OF INCOME TAX (TDS), COCHIN, ALONG WITH DEMAND NOTICE FOR THE AY 2012-13. ANNEXURE B: TRUE COPY OF THE APPELLATE ORDER DATED 27.2.2015 ITA NO.31/TDS/EKM/CIT(A)-III/12-13, OF CIT(A), KOCHI FOR AY 2012-13.

D

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