TROPICAL PLANTATIONS LTD. vs. THE AGRICULTURAL INCOME TAX AND STATE TAX OFFICER

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WP(C)/15204/2020HC KeralaKLHC01038459202022 August 2023Author: HONOURABLE MR. JUSTICE D. K. SINGH6 pages
AI SummaryRemanded

What did the High Court hold?

The High Court allowed the writ petition, setting aside the impugned order Ext.P5. The Court found that the order Ext.P5 was passed without considering the petitioner's contentions raised in their application dated 06.06.2020. Consequently, the case was remanded back to the assessing authority to consider the petitioner's claim for interest in accordance with the law and pass a fresh reasoned and speaking order. The petitioner was directed to appear before the assessing authority on 21.09.2023 with all relevant records. The Court did not decide on the entitlement to interest under Section 68(4) but directed reconsideration of the claim. The amount of Rs. 1,64,122/- was noted as the excess payment, and Rs. 53,563/- as the balance tax demand raised.

What were the facts?

The petitioner, Tropical Plantations Ltd., is challenging an order (Ext.P2) for not granting interest under Section 68(4) of the Kerala Agricultural Income Tax Act, 1991, and another order (Ext.P5) rejecting their application for rectification. The assessment for AY 2009-2010 was completed on 23.12.2011. An appeal by the petitioner was allowed on 14.05.2013, directing a revised assessment. The revised assessment order was passed only on 29.02.2020, adjusting an excess payment of Rs. 1,64,122/-. The petitioner had paid Rs. 2,17,685/- as accrued interest for non-payment of advance tax, which was not challenged. The petitioner then claimed interest on the excess payment from 07.05.2014 to 03.06.2020, but their application dated 06.06.2020 was rejected by order dated 16.06.2020 (Ext.P5), which also raised a demand for balance tax of Rs. 53,563/-.

What were the issues?

1. Whether the petitioner is entitled to interest under Section 68(4) of the Kerala Agricultural Income Tax Act, 1991, on the refund arising from the appellate order which has become final. (Question of law) 2. Whether the respondent erred in rejecting the petitioner's application for rectification (Ext.P5) without considering the contentions raised therein. (Question of mixed law and fact) Assessee's Contentions: The petitioner argued that they are entitled to interest at 15% under Section 68(4) of the Act on the refund. They also contended that the rectification order (Ext.P5) was passed without considering their application dated 06.06.2020, which claimed interest on the excess payment. The petitioner relied on the fact that the appellate order had become final and that the excess amount was paid by them. Revenue's Contentions: No specific contentions were recorded for the revenue in the judgment.

Which sections of the Income-tax Act were involved?

Section 68(4),Section 39(5),Section 37(1)

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 DINESH KUMAR SINGH TUESDAY, THE 22ND DAY OF AUGUST 2023 / 31ST SRAVANA, 1945 WP(C) NO. 15204 OF 2020 PETITIONER/S: TROPICAL PLANTATIONS LTD. TELEGRAPH ROAD, KOTTAYAM 686 001 REPRESENTED BY ITS DIRECTOR MR. P.T THOMAS BY ADV RAMESH CHERIAN JOHN RESPONDENT/S: THE AGRICULTURAL INCOME TAX AND STATE TAX OFFICER O/O THE AGRICULTURAL INCOME TAX AND STATE TAX OFFICER, STATE GOODS AND SERVICE TAX DEPARTMENT, KANJIRAPPALLY 686 507 BY ADV GOVERNMENT PLEADER OTHER PRESENT: RESHMITA RAMACHANDRAN-GP THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 22.08.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 15204 OF 2020 2 JUDGMENT Dated this the 22nd day of August, 2023 1.This writ petition has been filed under Article 226 of the Constitution of India, seeking the following prayers:- “i)To issue a writ of certiorari or other appropriate writ or direction quashing Ext.P2 order to the extent of not granting interest under Section 68(4) of the Act and Ext.P5

order

rejecting

the application

for rectification. ii)Declare that the petitioner is entitled to interest @ 15% under Section 68(4) of the Act on the refund which has arisen pursuant to Ext.P1 appellate order which has become final. iii)Issue a writ of mandamus or other appropriate writ or direction to the respondent to reconsider Ext.P4 application and issue the interest due to the petitioner under Section 68(4) of the Act as computed therein as expeditiously as possible.”

2.

The assessment on the income of the petitioner for the assessment year 2009-2010 was completed by order dated 23.12.2011 under Section 39(5) of the Kerala Agricultural Income Tax Act, 1991(‘the Act’ for short).

WP(C) NO. 15204 OF 2020 3 Being aggrieved by the said assessment order, the petitioner filed an appeal before the Deputy Commissioner (Appeals) -II Commercial Taxes, Kottayam who was on deputation to Ernakulam. The appellate authority by order dated 14.05.2013 allowed the appeal and set aside the assessment order and directed the assessing authority to revise the assessment order for the assessment year 2009 – 2010 in the light of the submission made by the assessee to the appellate authority. On demand, the assessing authority passed the order only on 29.02.2020. The excess amount paid by the petitioner to the extent of Rs. 1,64,122/- adjusted towards the demand, made as per the order dated 23.12.2011, under Section 37(1) of the Act. 3.The petitioner was asked to pay an amount of Rs.2,17,685/- as the accrued interest for the non payment of advance tax by the order dated 23.12.2011. However the petitioner did not challenge this order by levying interest. The petitioner thereafter filed an application dated 06.06.2020 claiming interest under Section 68(4) of WP(C) NO. 15204 OF 2020 4 the Act on the excess amount paid by the petitioner from the date of refund ie 07.05.2014 to 03.06.2020 ie; the date of which the assessment order was modified in pursuance to the petitioner. Learned counsel for the petitioner submitted that decision has been taken on the said application whether rectification order dated 16.06.2020 has been passed without taking note of the application of the petitioner dated 06.06.2020. By the order dated 16.06.2020, Exhibit P5, the demand of balance tax amount of Rs.53,563/- has been raised on the petitioner and the application of the petitioner has been rejected without considering the contentions raised in the application, the rectification order has been passed.

5.

Considering the fact that the impugned order (Ext.P5) has been passed without adverting to the contention raised by the petitioner in his application dated 06.06.2020, this Court deem it appropriate to allow this writ petition and set aside the impugned order, Ext.P5 and remand the case back to the assessing authority, to WP(C) NO. 15204 OF 2020 5 consider the claim of the petitioner in accordance with the law and pass fresh reasoned and speaking order. The petitioner is directed to appear before the assessing authority on 21.09.2023 with all the relevant records for passing fresh order as directed in this judgment. DINESH KUMAR SINGH JUDGE SJ

WP(C) NO. 15204 OF 2020 6

Appendix — schedule of exhibits
APPENDIX OF WP(C) 15204/2020 PETITIONER EXHIBITS EXHIBIT P1 TRUE COPY OF THE ORDER OF THE DEPUTY COMMISSIONER (APPEALS) dt 14-05-2013 EXHIBIT P2 TRUE COPY OF THE CONSEQUENTIAL ORDER DT 29-02-2020 PASSED BY THE RESPONDENT EXHIBIT P3 TRUE COPY OF THE ORDER DT 23-12-2011 PASSED BY THE INSPECTING ASSISTANT COMMISSIONER EXHIBIT P3(a) TRUE COPY OF THE RELEVANT CHAPTER NAMELY CHAPTER X OF THE KERALA AGRICULTURAL INCOME TAX ACT, 1991 DEALING WITH REFUNDS, CONSEQUENT INTEREST AND PROVISION PROVIDING FOR SET OFF OF REFUNDS ETC. EXHIBIT P4 TRUE COPY OF THE APPLICATION FOR RECTIFICATION DT 06-06-2020 FILED THROUGH THE PETITIONER'S CHARTERED ACCOUNTANT. EXHIBIT P5 TRUE COPY OF THE ORDER NO. 2390021/2009- 10 DT 16-06-2020 PASSED BY THE RESPONDENT EXHIBIT P6 TRUE COPY OF THE LETTER DT 20-06-2020 FILED BY THE PETITIONER THROUGH IT'S CHARTERED ACCOUNTANT.

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