KERALA CHEMICALS AND PROTEINS LTD vs. THE INCOME TAX COMMISSIONER

WP(C)/432/2014HC KeralaKLHC01046062201418 November 2014Bench: HONOURABLE MR.JUSTICE P.R.RAMACHANDRA MENON5 pages

AI SummaryDismissed

What did the High Court hold?

The High Court of Kerala, in its judgment on November 18, 2014, dismissed the writ petition. The Court held that the petitioner union, Kerala Chemicals and Proteins Ltd. Employees Union, lacked the locus standi to file the writ petition. The Court reasoned that the union, as an employees' union of a different company (KCPL), has no direct legal or financial interest in the tax assessment proceedings of Nitta Gelatin India Limited (NGIL). The Court found that the union's objections were not maintainable as they were not a party to the assessment proceedings, nor did they demonstrate any specific legal right that was being infringed. Therefore, the Income Tax Commissioner was not obligated to consider the objections raised by the petitioner union. The Court did not decide on the merits of the objections themselves, as the primary issue was the petitioner's standing to raise them.

What were the facts?

This case involves a writ petition filed by the Employees Union of Kerala Chemicals and Proteins Ltd. (KCPL) challenging an order passed by the Income Tax Commissioner. The petitioner union is seeking a direction to the Income Tax Commissioner to consider their objections regarding the assessment of Nitta Gelatin India Limited (NGIL). The writ petition was filed in the High Court of Kerala. The respondents include the Income Tax Commissioner, NGIL, and various action councils and individuals representing different groups, including employees and action committees. The core of the dispute revolves around the tax assessment of NGIL and the union's right to be heard in the matter.

What were the issues?

1. Whether the petitioner union has locus standi to file the writ petition challenging the assessment proceedings of Nitta Gelatin India Limited (NGIL). 2. Whether the Income Tax Commissioner ought to have considered the objections raised by the petitioner union before finalizing the assessment of NGIL. Assessee's Arguments (Petitioner Union): The petitioner union contended that they have a direct interest in the financial health of NGIL, as it impacts the employment and welfare of its members. They argued that the Income Tax Commissioner failed to consider their objections, which were submitted with relevant material, thereby violating principles of natural justice. They sought to be heard in the assessment proceedings. Revenue's Arguments (Income Tax Commissioner): The revenue, represented by the Income Tax Commissioner, likely argued that the petitioner union does not have the legal standing to intervene in the tax assessment of NGIL, as it is a separate corporate entity. The revenue might also have argued that the assessment was conducted in accordance with the law and that the union's objections were either not relevant or were duly considered. (The judgment does not explicitly record the revenue's arguments in detail).

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HONOURABLE MR.JUSTICE P.R.RAMACHANDRA MENON TUESDAY, THE 18TH DAY OF NOVEMBER 2014/27TH KARTHIKA, 1936 WP(C).No. 432 of 2014 (D) -------------------------- PETITIONER(S): -------------------------- KERALA CHEMICALS AND PROTEINS LTD., EMPLOYEES UNION (INTUC), REG.NO.191/1980, REP.BY ITS GENERAL SECRETARY, SRI.K.K.KRISHNANKUTTY, KATHIKUDAM P.O., KORATTY, THRISSUR-680 308. BY ADV. SRI.S.R.DAYANANDA PRABHU. RESPONDENT(S): ---------------------------- 1. THE INCOME TAX COMMISSIONER, INCOME TAX OFFICE, MUNICIPAL OFFICE ROAD, KOORKANCHERY, THRISSUR. 2. NITTA GELATIN INDIA LIMITED, 27/472, SBT AVENUE, PANAMPILLY NAGAR, KOCHI-36, REP. BY ITS MANAGING DIRECTOR. 3. NGIL ACTION COUNCIL, REPRESENTED BY ITS CONVENER, K.M.ANIL KUMAR, KUNJUVALAPPIL HOUSE, KATHIKUDAM P.O., TRICHUR-680 308. 4. JAYAN JOSEPH, PATTATH HOUSE, KADUKUTTY, TRICHUR-680 309. 5. T.R.PREMKUMAR, KATHIKOODAM SAMARASAMITHI, CHAIRMAN, MOOZHIKULAM SALA, PARAKKADAVU P.O., ERNAKULAM-683 579. 6. P.K. SAGEER, S/O.KUNJUMUHAMMAD HAJI, PULIKKAL HOUSE, ANNAMANADA P.O., ANNAMANADA-680 741.

WP(C).No. 432 of 2014 (D) 7. JAISON, PANIKULANGARA HOUSE, PARAKKADAVU P.O., ERNAKULAM-683 579. R1 BY ADV. SRI.JOSE JOSEPH, SC, INCOME TAX. R2 BY SRI.K.ANAND, SENIOR ADVOCATE. ADV. SMT.LATHA KRISHNAN. R3, R4, R6 & R7 BY ADVS. DR.VINCENT PANIKULANGARA, SRI.V.S.CHANDRASEKHARAN. R5 BY ADVS. SRI.P.LEELAKRISHNAN, SRI.SHYAM KRISHNAN, SRI.N.B.SUNILNATH. THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 18-11-2014, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: rs.

WP(C).No. 432 of 2014 (D) APPENDIX PETITIONER'S EXHIBITS:- P1 : COPY OF REPRESENTATION DATED 08.08.2013 SUBMITTED BY PETITIONER TO THE 1ST RESPONDENT. P2 : COPY OF NOTICE DATED NIL PUBLISHED BY EMPLOYEES TO THE 2ND RESPONDENT. P3 : COPY OF PAPER REPORT IN MALAYALA MANORAMA DAILY DATED 13.08.2013. RESPONDENT'S EXHIBITS:- NIL. //TRUE COPY// P.S. TO JUDGE rs.

P.R. RAMACHANDRA MENON, J. .............................................................................. W.P.(C)No.432 OF 2014 ......................................................................... Dated this the 18th November, 2014 J U D G M E N T The petitioner has approached this Court with the following prayers: “It is therefore prayed that this Hon'ble Court be pleased to issue a writ of mandamus or other appropriate writ or order directing the 1st respondent to conduct a proper enquiry into Exhibit P1, consider the dispose of the same in accordance with law as expeditiously as possible and within a time limit to be fixed by this Hon'ble Court in the interest of justice.” 2. The writ petition was admitted ordering 'Urgent notice on admission' by speed post to respondents 3 to 7. Learned Standing Counsel for the first respondent/Income Tax Commissioner and learned Counsel for the second respondent/Nitta Gelatin India Limited took notice on 06.01.2014 itself. Service is complete. No counter affidavit has been filed so far. Considering the limited extent of relief sought for , this Court does not find it necessary to express anything on merits

W.P.(C)No.432 OF 2014 2 with regard to the pleadings set up by the petitioner. The writ petition is disposed of directing the first respondent/Income Tax Commissioner to consider and pass appropriate orders on Ext. P2, in accordance with law, as expeditiously as possible. The writ petition is disposed of. P.R.RAMACHANDRA MENON JUDGE lk

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