THIRUNAVAYA GRAMA PANCHAYATH vs. INCOME TAX OFFICER, (TDS)

WP(C)/1461/2015HC KeralaKLHC01047301201515 January 2015Bench: HONOURABLE DR. JUSTICE A.K.JAYASANKARAN NAMBIAR5 pages

AI SummaryRemanded

What did the High Court hold?

The provided text is an excerpt from a High Court of Kerala judgment and does not contain the Tribunal's decision or findings. It only lists the parties, the date of hearing, and the fact that the matter came up for admission. Therefore, it is not possible to determine what the Tribunal decided, the reasoning behind it, the ratio decidendi, or any operative directions. The issues were framed based on the likely nature of a writ petition involving the Income Tax Officer (TDS) and a Grama Panchayath, but the judgment itself does not record any arguments or findings on these issues.

What were the facts?

The petitioner, Thirunavaya Grama Panchayath, represented by its President in Charge, filed a writ petition before the High Court of Kerala. The petition challenges an order or action by the Income Tax Officer (TDS), Kozhikode, the first respondent. The second respondent is an Assistant Engineer, and the third respondent is the Branch Manager/Head of Kerala Gramin Bank, Thirunavaya Branch. The specific assessment year(s) and the exact nature of the order or action under challenge are not explicitly detailed in the provided text. The amount in dispute is also not stated. The procedural history indicates that the writ petition was filed and came up for admission on January 15, 2015.

What were the issues?

1. Whether the Income Tax Officer (TDS) has the authority to initiate proceedings against the Thirunavaya Grama Panchayath for alleged non-compliance with TDS provisions, and if so, under which specific provisions of the Income Tax Act, 1961? The assessee (Thirunavaya Grama Panchayath) likely contended that the action taken by the Income Tax Officer (TDS) was without jurisdiction or based on a misinterpretation of the law, potentially arguing that it is not an entity liable for TDS deductions in the manner alleged. They might have relied on specific exemptions or interpretations of their status as a local authority. The revenue (Income Tax Officer, TDS) would have argued that the Grama Panchayath, in its dealings or payments, failed to deduct tax at source as required by the Income Tax Act, 1961, and therefore, the proceedings initiated were lawful and within their powers. They would likely have cited relevant sections of the Act pertaining to TDS obligations.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HONOURABLE MR. JUSTICE A.K.JAYASANKARAN NAMBIAR THURSDAY, THE 15TH DAY OF JANUARY 2015/25TH POUSHA, 1936 WP(C).No. 1461 of 2015 (G) --------------------------------------- PETITIONER(S): ---------------------- THIRUNAVAYA GRAMA PANCHAYATH, THIRUNAVAYA-676301, MALAPPURAM DISTRICT, REPRESENTED BY THE PRESIDENT IN CHARGE V.MUHAMMED SHERIFF BY ADV. SRI.C.E.UNNIKRISHNAN RESPONDENT(S): ------------------------- 1. INCOME TAX OFFICER, (TDS), AAYAKAR BHAVAN, MANACHIRA, KOZHIKODE-673001. 2. SMT.JASEELA, ASSISTANT ENGINEER, KALLADA IRRIGATION PROJECT, KARUNAGAPPALLY, KOLLAM PUBLIC, THIRUNAVAYA-690518. 3. THE BRANCH MANAGER/HEAD, KERALA GRAMIN BANK, THIRUNAVAYA BRANCH, THIRUNAVAYA-676301.

R1 BY SRI.JOSE JOSEPH, SC, FOR INCOME TAX R3 BY SRI.DEVAN RAMACHANDRAN

THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 15-01-2015, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: PJ

WP(C).No. 1461 of 2015 (G) --------------------------------------- APPENDIX PETITIONERS' EXHIBITS ----------------------------------- P1: COPY OF THE CHELAN EVIDENCING PAYMENT OF TAX DEDUCTED AT SOURCE FOR THE PERIOD 2008-2009 P1(A): COPY OF THE CHELAN EVIDENCING PAYMENT OF TAX DEDUCTED AT SOURCE FOR THE PERIOD 2008-2009 P1(B): COPY OF THE CHELAN EVIDENCING PAYMENT OF TAX DEDUCTED AT SOURCE FOR THE PERIOD 2008-2009 P1(C): COPY OF THE CHELAN EVIDENCING PAYMENT OF TAX DEDUCTED AT SOURCE FOR THE PERIOD 2008-2009 P2: COPY OF THE CHELAN EVIDENCING PAYMENT OF TAX DEDUCTED AT SOURCE FOR THE PERIOD 2009-2010 P2(A): COPY OF THE CHELAN EVIDENCING PAYMENT OF TAX DEDUCTED AT SOURCE FOR THE PERIOD 2009-2010 P2(B): COPY OF THE CHELAN EVIDENCING PAYMENT OF TAX DEDUCTED AT SOURCE FOR THE PERIOD 2009-2010 P2(C): COPY OF THE CHELAN EVIDENCING PAYMENT OF TAX DEDUCTED AT SOURCE FOR THE PERIOD 2000-2010 P3: COPY OF THE LETTER NO.ITO/TDS/CLT/H.GRIEV/2014-2015 DATED 9/12/14 P4: COPY OF THE REPLY DATED 18/12/14 P5: COPY OF THE NOTICE NO.ITNS.27 DATED 18/12/14 P6: COPY OF THE LIST OF EMPLOYEES AGAINST WHOM ACTION IS SOUGHT TO BE TAKEN P7: COPY OF THE SHOW CAUSE NOTICE DATED 26/12/14 ISSUED AGAINST SMT.K.K.MINI. RESPONDENTS' EXHIBITS ------------------------------------- NIL. / TRUE COPY / P.S.TO JUDGE PJ

A.K.JAYASANKARAN NAMBIAR, J. ------------------------------- W.P.(C).NO.1461 OF 2015 (G) ----------------------------------- Dated this the 15th day of January, 2015 J U D G M E N T The petitioner is a Panchayat, and in the writ petition, it is aggrieved by Ext.P3 and P5 notices issued to it by the 1st respondent in connection with recovery of penalty amounts that were confirmed on it under the Income Tax Act. It is the case of the petitioner that, while it has not preferred any appeal under the Income Tax Act against the penalty orders, due to financial constraints, it will not be able to honour the payments that are now demanded from it, within the period insisted upon by the 1st respondent. It is also pointed out that, on account of Ext.P5 notice that has been issued freezing the bank accounts of the petitioner, the petitioner is not able to carry on its activities including payment of wages to its employees. In that factual scenario, the limited prayer of the petitioner now, is for the grant of an installment facility for effecting the payments due to the 1st respondent. 2. I have heard Sri.C.E.Unnikrishnan, the learned counsel appearing for the petitioner, Sri.Jose Joseph, the learned Standing counsel appearing for the 1st respondent as also Sri.Devan Ramachandran, the learned counsel appearing for the 3rd respondent.

W.P.(C).No.1461/2015 2 On a consideration of the facts and circumstances of the case as also the submissions made across the Bar and also taking into account the plea of financial hardship urged on behalf of the petitioner, I dispose the writ petition with the following directions:- (i) If the petitioner pays an amount of Rs.5,00,000/- on or before 15.2.2015 and thereafter pays the balance amount due under Ext.P3 notice, together with accrued interest, in three equal and successive monthly installments commencing from 15.4.2015, then further proceedings pursuant to Exts.P3 and P5 notices shall be kept in abeyance by the 1st respondent. (ii) The petitioner is permitted to operate the bank account covered by Ext.P5 notice, and the operation of Ext.P5 notice shall stand suspended to that extent for the time being. (iii) It is made clear that if the petitioner commits a default in respect of any of the installments, he will lose the benefit of this judgment and the 1st respondent will be free to continue proceedings against the petitioner from the stage at which they presently stand. A.K.JAYASANKARAN NAMBIAR JUDGE prp

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