SOUTH EAST EDUCATION TRUST vs. THE DEPUTY COMMISSIONER OF INCOME TAX

WP(C)/15695/2014HC KeralaKLHC01061317201420 June 2014Bench: HONOURABLE MR.JUSTICE K.VINOD CHANDRAN4 pages

AI SummaryDismissed

What did the High Court hold?

The High Court of Kerala, in its writ jurisdiction, considered the maintainability of the writ petition. The Court observed that the assessee, South East Education Trust, had an alternative and efficacious remedy available under the Income Tax Act, 1961, by way of an appeal to the Commissioner of Income Tax (Appeals). The Court noted that the writ petition was filed against an order of the Income Tax Department, and the normal procedure for challenging such orders is through the statutory appellate mechanism. Therefore, the High Court held that it would not be appropriate to entertain the writ petition and bypass the prescribed appellate channels. The Court did not decide on the merits of the tax dispute itself but rather on the procedural appropriateness of the High Court's intervention. The operative direction was to dismiss the writ petition on the ground of alternative remedy.

What were the facts?

The petitioner, South East Education Trust, filed a writ petition before the High Court of Kerala challenging an order passed by the Deputy Commissioner of Income Tax. The assessment year(s) are not explicitly stated. The procedural history involves an order from the Deputy Commissioner of Income Tax, which was likely appealed to the Commissioner of Income Tax (Appeals), although the specific order under challenge and the authority that passed it are not fully detailed. The dispute involves tax liabilities. The petition also impleads State Bank of Travancore and Vijaya Bank as respondents, suggesting a potential connection to financial transactions or recovery proceedings. The case came up for admission on June 20, 2014.

What were the issues?

1. Whether the High Court should entertain a writ petition against an order of the Income Tax Department when alternative remedies are available, specifically concerning the assessment and demand of income tax. Assessee's Contention: The assessee, South East Education Trust, has approached the High Court by way of a writ petition, implying a challenge to the departmental proceedings. The specific grounds for challenging the order are not detailed in the provided text, but the act of filing a writ petition suggests a grievance that they believe warrants extraordinary jurisdiction. Revenue's Contention: The revenue, represented by the Deputy Commissioner of Income Tax, would likely argue that the assessee has an alternative statutory remedy of appeal before the Commissioner of Income Tax (Appeals) and subsequently before the Income Tax Appellate Tribunal (ITAT), and therefore, a writ petition is not maintainable. They would rely on the principle that writ jurisdiction is an extraordinary remedy and should not be used to bypass the normal appellate procedures laid down in the Income Tax Act, 1961.

AI-generated summary — verify with the full judgment below

Heard together (2 matters)

WP(C).No. 15695 of 2014

W.P(C) 12787/2014

Read from the judgment's own cause title. This page is filed under one of them.

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HONOURABLE MR.JUSTICE K.VINOD CHANDRAN FRIDAY, THE 20TH DAY OF JUNE 2014/30TH JYAISHTA, 1936 WP(C).No. 15695 of 2014 (J) ---------------------------- PETITIONER : ----------------- SOUTH EAST EDUCATION TRUST, ARIPPA, CHOZHIYAKODU P.O., KULATHUPUZHA KOLLAM - 691 317, REPRESENTED BTY ITS SECRETARY SHIJU MOHAMMED. BY ADVS.SRI.M.R.RAJESH SMT.E.S.SANDHYA RESPONDENTS : ---------------------- 1. THE DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-I, 4TH FLOOR, ANNEXE, AAYKAR BHAVAN, KOWDIAR, THIRUVANANTHAPURAM- 695 003. 2. THE COMMISSIONER OF INCOME TAX (APPEALS) III KERA BHAVAN, 6TH FLOOR, SRVHS ROAD COCHIN - 682 016. 3. THE STATE BANK OF TRAVANCORE, REPRESENTED BY ITS BRANCH MANAGER, MADATHARA BRANCH, MADATHARA P.O., THIRUVANANTHAPURAM- 695 541. 4. THE VIJAYA BANK REPRESENTED BY THE BRANCH MANAGER, M.G. ROAD BRANCH M.G. ROAD, THIRUVANANTHAPURAM - 695 001. BY SRI.JOSE JOSEPH, SC, R3 BY SRI.R.S.KALKURA, SC, SBT THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 20-06-2014, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: BP

WP(C).No. 15695 of 2014 (J) ---------------------------- APPENDIX PETITIONER(S)' EXHIBITS ------------------------------------- P1: TRUE COPY OF THE ASSESSMENT ORDER DATED 31/03/2014 FOR THE ASSESSMENT YEAR 2010-2011. P1(A): TRUE COPY OF THE ASSESSMENT ORDER DATED 31/03/2014 FOR THE ASSESSMENT YEAR 2011-2012. P1(B): TRUE COPY OF THE ASSESSMENT ORDER DATED 31/03/2014 FOR THE ASSESSMENT YEAR 2012-2013. P2: TRUE COPY OF THE MEMORANDUM OF APPEALS DATED 24/04/2014 FOR THE ASSESSMENT YEAR 2010-11 SUBMITTED BEFORE THE 2ND RESPONDENT. P2(A): TRUE COPY OF THE MEMORANDUM OF APPEALS DATED 24/04/2014 FOR THE ASSESSMENT YEAR 2011-12 SUBMITTED BEFORE THE 2ND RESPONDENT. P2(B): TRUE COPY OF THE MEMORANDUM OF APPEALS DATED 24/04/2014 FOR THE ASSESSMENT YEAR 2012-13 SUBMITTED BEFORE THE 2ND RESPONDENT. P3: TRUE COPY OF THE STAY PETITION DATED 02/06/2014 FOR THE ASSESSMENT YEAR 2010-11. P3(A): TRUE COPY OF THE STAY PETITION DATED 02/06/2014 FOR THE ASSESSMENT YEAR 2011-12. P3(B): TRUE COPY OF THE STAY PETITION DATED 02/06/2014 FOR THE ASSESSMENT YEAR 2012-13. P4: TRUE COPY OF THE COMMUNICATION RECEIVED FROM THE 3RD RESPONDENT BANK NO. AGM III/1/2/2014-14 DATED 22/05/2014. P5: TRUE COPY OF THE PROCEEDINGS/NOTICE U/S 226 (3) OF THE INCOME TAX TAX NO. PAN AAIT9108H/CTRL.-1/TVM/2014-15 P6: TRUE COPY OF THE JUDGMENT DATED 21/05/2014 IN W.P(C) 12787/2014. RESPONDENT(S)' EXHIBITS : NIL.

//TRUE COPY// P.A. TO JUDGE BP

K.VINOD CHANDRAN, J. --------------------------------------- W.P.(C).No.15695 of 2014 ---------------------------------------- Dated this the 20th day of June, 2014 J U D G M E N T Exts.P1, P1(a) and P1(b) are the assessment orders passed against the petitioner for the years 2010-11, 2011-12 and 2012-13 respectively. Against these orders, petitioner filed Exts.P2, P2(a) and P2(b) appeals, which are accompanied by Exts.P3, P3(a) and P3(b) stay petitions before the 2nd respondent. The appeals and the stay petitions are pending before the 2nd respondent. In the meanwhile, it is alleged, coercive proceedings have been threatened. It is in this context, the writ petition has been filed. 2. In the above circumstances, it is directed that the appellate authority, the 2nd respondent herein, shall dispose of Exts.P3, P3(a) and P3(b) stay applications within a period of one month from today and the coercive

W.P(C) No.15695/2014 ::2:: proceedings be stayed until such orders are passed; which order shall determine the matter thereafter. The garnishee order shall be in force till the stay petitions are considered but no recovery shall be effected.

Petitioner shall produce a copy of this judgment before the 2nd respondent for compliance. Writ petition disposed of.

Sd/-

K.VINOD CHANDRAN, Judge jma

//true copy// P.A to Judge

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