M/S.indian Institute Of Logistics Pvt. Ltd., Rep.by Its Director V.j.pushpa Kumar v. The Income Tax Officer, Tds Ward 2(2), Room

In the High Court of Judicature at MadrasDated : 02.2.2018 Coram : The Honourable Mr.Justice T.S.SIVAGNANAMWrit Petition Nos.2269 & 2270 of 2018& WMP.Nos.2766 & 2767 of 2018 M/s.Indian Institute of LogisticsPvt. Ltd., rep.by its DirectorV.J.Pushpa Kumar...PetitionerVs The Income Tax Officer, TDS Ward 2(2),Room No.109, I Floor, BSNL BuildingTower-I, Greams Road, Chennai-6....Respondent PETITIONS under Article 226 of The Constitution of Indiapraying for the issuance of Writs of Certiorarified Mandamus (i)to call for the records relating to the orders passed by therespondent in TDS-2(2)/CHE/2017-18 dated 01.1.2018, quash thesame and forbear the respondent from taking any coercivemeasures such as attachment of bank accounts pending payment ofthe TDS related dues within the time permitted by this Court(WP.No.2269 of 2018); and to call for the records relating tothe order passed by the respondent in TAN : CHE105939D/TDS-W2(2)/2016-17 dated 31.3.2017, quash the same and consequentlypermit the petitioner to pay the dues payable in 36 months asprayed for by the petitioner (WP.No.2270 of 2018). For Petitioner :Mr.Niranjan Rajagopalan For Respondent :Mrs.Hema Muralikrishnan, SSC and Mr.Navin Durai Babu, JSC COMMON ORDER Mrs.Hema Muralikrishnan, learned Senior Standing Counselassisted by Mr.Navin Durai Babu, learned Junior StandingCounsel, accepts notice for the respondent. Heard both. https://hcservices.ecourts.gov.in/hcservices/ 2. The petitioner is an educational institution offeringvarious courses and it appears that they have not remitted thetax, which was deducted at source within the time stipulatedunder the provisions of the Income Tax Act, 1961. Consequently,interest became payable for the belated payment in terms ofSection 201(1A) of the said Act. 3. The petitioner expressed their difficulties to therespondent Department and this Court finds that the respondent -Department had been benevolent and had granted indulgence to thepetitioner by passing an order dated 31.3.2017, by which, therespondent permitted the petitioner to clear the outstanding in10 monthly instalments subject to payment of interest chargeableunder Section 220(2) of the said Act. The first instalment wasdue on 10.5.2017 and the subsequent instalments become due onthe 10th of every succeeding month. The communication dated31.3.2017 further states that any failure to adhere to theinstalment scheme should result in cancellation of the schemeand coercive steps for recovery of tax demand would beinitiated. 4. Admittedly, the petitioner has paid only Rs.3 lakhs anddefaulted in payment of monthly instalments. Therefore, theindulgence shown by the Department vide its communication dated31.3.2017 does not, any longer, appear to enure to the benefitof the petitioner. 5. As rightly pointed out by the learned Senior StandingCounsel appearing for the respondent, teachers would becomeliable for payment of interest under Section 234A, B and C,which should also be fastened on the petitioner. 6. In the light of the above facts, there is no error in theimpugned communication dated 01.1.2018, which is one moreopportunity granted to the petitioner. The Department hasrightly initiated prosecution and it appears that the petitionerhas challenged the same on certain technical grounds by filingCrl.O.P.Nos.20355 to 20358 of 2017, which have been entertained,an order of interim stay has been granted and the personalappearance of the directors has been dispensed with. Thus,considering the facts and circumstances of the case, noindulgence can be granted to the petitioner and the impugnedcommunication does not call for interference. 7. For all the above reasons, the writ petitions aredismissed. No costs. Consequently, the connected WMPs are alsodismissed. 8. However, it is open to the petitioner to approach theAuthorities, if so advised. Sd/- Assistant Registrar(CS-VIII) 7. For all the above reasons, the writ petitions aredismissed. No costs. Consequently, the connected WMPs are alsodismissed. 8. However, it is open to the petitioner to approach theAuthorities, if so advised. Sd/- Assistant Registrar(CS-VIII) //True Copy// Sub Assistant RegistrarToThe Income Tax Officer, TDS Ward 2(2), Room No.109, I Floor, BSNL Building Tower-I, Greams Road, Chennai-6. + 2 ccs to M/s. G.R. Associates, Advocate Sr.8292+ 1 cc to M/s. Hema Muralikrishnan, Advocate Sr.8044WP.Nos.2269 & 2270 of 2018&WMP.Nos.2766 & 2767 of 2018GP(CO)EU(22/02/2018)