K.J.PAULOSE vs. INCOME TAX OFFICER

PDF · subscribers
WP(C)/16388/2019HC KeralaKLHC01041725201905 August 2019Author: HONOURABLE MR.JUSTICE S.V.BHATTI5 pages
AI SummaryPartly Allowed

What did the High Court hold?

The High Court took note of the payment made on August 2, 2019, and recorded it as part satisfaction of the petitioner's claim. The Court granted the petitioner liberty to represent to the Income Tax Officer (1st respondent) for the payment of interest for the period from July 1, 2018, to September 1, 2019, by enclosing a copy of the judgment within three weeks. The Court directed that the representation, if filed, should be considered and disposed of expeditiously. The Court did not decide on the merits of the petitioner's claim for the exact period of interest but facilitated a mechanism for its consideration. No costs were ordered.

What were the facts?

The petitioner, K.J. Paulose, filed a writ petition before the High Court of Kerala challenging an action by the Income Tax Officer (Ward-1, Thodupuzha) and other revenue authorities. The petitioner contended that while a tax refund of Rs. 1,89,584/- was paid on August 2, 2019, covering interest up to June 30, 2018, he was entitled to interest until the actual date of payment, August 2, 2019. The petitioner sought to withdraw the writ prayer due to subsequent developments and requested permission to make a representation to the Income Tax Officer for the remaining interest.

What were the issues?

1. Whether the petitioner is entitled to interest on the tax refund for the period from July 1, 2018, to August 2, 2019, and if so, whether the Court should direct the respondent to consider a representation for this interest. (Mixed question of law and fact, relating to Section 244A of the Income Tax Act, 1961). Assessee's Contention: The petitioner argued that the refund paid covered interest only up to June 30, 2018, and he was entitled to interest until the actual payment date of August 2, 2019. He requested permission to make a representation to the Income Tax Officer for the balance interest. Revenue's Contention: The Standing Counsel for the revenue submitted that the cause of action did not survive as a payment had been made. They stated that the calculation and payment of interest were matters for the first respondent (Income Tax Officer) to consider. They agreed to grant reasonable time for reconsidering the petitioner's request for interest.

Which sections of the Income-tax Act were involved?

Section 244A

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 S.V.BHATTI MONDAY, THE 05TH DAY OF AUGUST 2019 / 14TH SRAVANA, 1941 WP(C).No.16388 OF 2019(W) PETITIONER: K.J.PAULOSE KIZHAKKUMKARA HOUSE, MAMALASSERY P.O., RAMAMANGALAM 686 663, ERNAKULAM DISTRICT. BY ADV. SRI.TOMSON T.EMMANUEL RESPONDENTS: 1 INCOME TAX OFFICER WARD-1, MAHIMA TOWERS, THODUPUZHA 685 584. 2 COMMISSIONER OF INCOME TAX (APPEALS)-II, INCOME TAX DEPARTMENT, 28/243, “POORNIMA”, PANAMPILLY NAGAR, KOCHI 682 036 3 JOINT COMMISSIONER OF INCOME TAX, ALUVA RANGE, KAP COMPLEX, PERIYAR NAGAR, ALUVA, KERALA 683 101. 4 CENTRAL BOARD OF DIRECT TAXES, 9TH FLOOR LOK NAYAK BHAVAN, KHAN MARKET, NEW DELHI 110 003, REPRESENTED BY ITS CHAIRPERSON. 5 CHIEF COMMISSIONER OF INCOME TAX, ERNAKULAM COCHIN 682 011. SC SRI CHRISTOPHER ABRAHAM THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 05.08.2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: -2- WP(C).No.16388 OF 2019(W)

JUDGMENT Sri. Tomson T. Emmanuel, the learned counsel for the petitioner, submits that on 02.08.2019 the respondents ordered and paid tax refund amounting to Rs.1,89,584/- (Rupees One lakh eighty nine thousand five hundred and eighty four only). The payment covers the interest payable up to 30th June 2018. The petitioner is entitled to get interest till 02.08.2019. Sri. Tomson T. Emmanuel,

therefore requests the Court firstly, not press the writ prayer keeping in view the subsequent developments and secondly, requests the Court to permit the petitioner to represent the 1st respondent for payment of interest from 01.07.2018 till 01.08.2019. Petitioner, if makes a representation, the same may be considered and disposed of within reasonable time.

2.

The learned Standing Counsel submits that the cause of action, keeping in view the amount already paid by respondents does not survive. The calculation of interest and payment etc. are the matters for consideration by the 1st respondent.

-3- WP(C).No.16388 OF 2019(W) In case of objection on the period which interest is paid, reasonable time is granted for reconsidering the request of petitioner for payment of interest from 01.07.2018 to 1.09.2019. The respective submissions are placed on record. The writ petition is disposed of by this order: a) The payment made on 02.08.2019 is taken note of and part satisfaction is recorded. b) Petitioner is given liberty to represent to 1st respondent for payment of interest for 01.07.2018 till 01.09.2019 by enclosing a copy of this judgment within three weeks from today. c) The representation filed by the petitioner is considered and disposed of expeditiously. No order as to costs. S.V.BHATTI JUDGE JS

-4- WP(C).No.16388 OF 2019(W)

Appendix — schedule of exhibits
APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 TRUE COPY OF INCOME TAX RETURN FOR AY 2006-07 DATED 1.3.2007 SUBMITTED BEFORE 1ST RESPONDENT ALON WITH COMPUTATION OF STATEMENT OF INCOME AND TDS CERTIFICATE. EXHIBIT P2 TRUE COPY OF ORDER U/S. 154 READ WITH SECTION 143 (1) DATED 14.2.2008 ISSUED BY 1ST RESPONDENT IN REFUNDING A SUM OF RS. 15,710/ONLY FOR AY 2006-07, AGAINST EXT. P1 RETURN SUBMITTED. EXHIBIT P3 TRUE COPY OF APPELLANT ORDER NO. 29/TPA/07-08 DATED 9.5.2018 PASSED BY 2ND RESPONDENT IN APPEAL SUBMITTED AGAINST EXT P2 ORDER. EXHIBIT P4 TRUE COPY OF LETTER DATED 11.6.2018 SUBMITTED BEFORE 1ST RESPONDENT, ALONG WITH COPY OF EXT P3 APPELLATE ORDER FOR MODIFYING EXT P2 ORDER. EXHIBIT P5 TRUE COPY OF MODIFIED ORDER DATED 19.6.2018 ISSUED BY 1ST RESPONDENT, WITHOUT REFUNDING EXCESS REFUNDABLE AMOUNT. EXHIBIT P6 TRUE COPY OF LETTER DATED 19.9.2018 SUBMITTED BEFORE 1ST RESPONDENT, FOR REFUNDING THE EXCESS AMOUNT TOGETHER WITH INTEREST FOR AY 2006-07 EXHIBIT P7 TRUE COPY OF LETTER DATED 24.9.2018 ISSUED BY 1ST RESPONDENT INFORMING DIFFICULTY IN REFUNDING THE EXCESS AMOUNT, AVAILABLE IN EXT. P5 MODIFIED ORDER FOR WANT EXHIBIT P8 TRUE COPY OF LETTER DATED 30.11.2018 SUBMITTED BEFORE 5TH RESPONDENT FOR ISSUING PROPER DIRECTIONS TO RESPONDENT 1 TO 3. -5- WP(C).No.16388 OF 2019(W) EXHIBIT P8 A TRUE COPY OF LETTER DATED 24.1.2019 SUBMITTED BEFORE 5TH RESPONDENT AS REMAINDER TO EXT. P8 REQUEST. RESPONDENTS'S/S EXHIBITS: NIL

More judgments on Section 244A

All 1,186 judgments and leading authorities on Section 244A →

Recent GST High Court judgments

Search GST case law →