G.N.INFOMEDIA PVT. LTD. vs. THE INCOME TAX OFFICER

WP(C)/13809/2020HC KeralaKLHC01035006202002 November 2020Author: HONOURABLE DR. JUSTICE A.K.JAYASANKARAN NAMBIAR3 pages

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What did the High Court hold?

The High Court of Kerala, taking note of the petitioner's plea of financial hardship, disposed of the writ petition. The Court directed that if the petitioner pays the total demand of Rs. 6,60,287/- along with accrued interest till the date of payment, in ten equal successive monthly instalments, commencing from November 30, 2020, then further recovery proceedings against the petitioner shall be kept in abeyance. The Court further clarified that upon the petitioner discharging the liability as directed, the attachments made over the petitioner's bank accounts shall be lifted without any delay. The core principle here is the Court's discretion to grant relief in cases of genuine financial distress, balancing the taxpayer's obligation with their capacity to pay.

What were the facts?

The petitioner, G.N.Infomedia Pvt. Ltd., is seeking to discharge a demand of Rs. 6,60,287/- raised by the Income Tax Department. The petitioner has approached the High Court of Kerala by way of a writ petition (civil) seeking permission to pay this demand in instalments due to alleged financial hardship. The Income Tax Officer, Ward 74(3), Delhi, is the respondent. The writ petition was filed and heard on November 2, 2020.

What were the issues?

1. Whether the petitioner, facing a demand of Rs. 6,60,287/-, should be granted permission to pay the said liability in instalments on grounds of financial hardship? (Question of fact and law) Assessee's contention: The petitioner, G.N.Infomedia Pvt. Ltd., has pleaded financial hardship and seeks the Court's intervention to allow them to discharge their tax liability in instalments. No specific authorities or precedents were mentioned in the judgment for the assessee's argument. Revenue's contention: The judgment does not record any specific contentions made by the respondent Income Tax Officer regarding the assessee's plea for instalments. The revenue's role was as the authority raising the demand.

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 A.K.JAYASANKARAN NAMBIAR MONDAY, THE 02ND DAY OF NOVEMBER 2020 / 11TH KARTHIKA, 1942 WP(C).No.13809 OF 2020(A) PETITIONER/S: G.N.INFOMEDIA PVT. LTD. REPRESENTED BY ITS DIRECTOR R.AJITHKUMAR, MANGALAM TELEVISIONS, ARISTO JUNCTION, THAMBANOOR, THIRUVANANTHAPURAM, PIN-695001. BY ADV. SRI.GEORGEKUTTY MATHEW RESPONDENT/S: THE INCOME TAX OFFICER OFFICE OF THE INCOME TAX OFFICER, WARD 74(3), ROOM NO.504A, 5TH FLOOR, AAYAKAY BHAWAN, LEKSHMINAGAR, DISTRICT CENTRE, DELHI-110092. R1 BY SRI.CHRISTOPHER ABRAHAM, INCOME TAX DEPARTMENT THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 02.11.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No.13809 OF 2020(A) 2

JUDGMENT The petitioner, who is faced with a demand of Rs.6,60,287/- from the Income Tax department, seeks the grant of instalments to discharge the said liability to the Department.

Taking note of the plea of financial hardship urged on behalf of the petitioner, I dispose the writ petition by directing that if the petitioner pays the said amount together with accrued interest till the date of payment in ten equal successive monthly instalments commencing from 30.11.2020, then the further proceedings for recovery shall be kept in abeyance. It is made clear that on the petitioner discharging the liability as aforesaid, the attachments over the bank accounts of the petitioner shall be lifted without any further delay. A.K.JAYASANKARAN NAMBIAR JUDGE WP(C).No.13809 OF 2020(A) 3 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1OF THE NOTICE DATED 10.12.2019 ISSUED BY THE RESPONDENT TO THE BRANCH MANAGER, SOUTH INDIAN BANK THIRUVANANTHAPURAM CHALAI BRANCH. EXHIBIT P2OF THE NOTICE DATED 10.12.2019 ISSUED BY THE RESPONDENT TO THE BRANCH MANAGER, HDFC BANK VAZHUTHACAUD BRANCH. EXHIBIT P3OF THE REPRESENTATION DATED 11.6.2020 SUBMITTED BY THE PETITIONER BEFORE THE RESPONDENT. EXHIBIT P4OF THE PRINTOUT OF THE FRESH DEMAND DOWNLOADED FROM THE WEBSITE OF THE RESPONDENT. EXHIBIT P5OF THE REPRESENTATION DATED 11/06/2020 SUBMITTED BY THE PETITIONER BEFORE THE RESPONDENT.

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