Wp(C)/1461/2015 Of Thirunavaya Grama Panchayath v. Income Tax Officer, (Tds)

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: --------------------------------------- APPENDIX PETITIONERS' EXHIBITS ----------------------------------- P1:COPY OF THE CHELAN EVIDENCING PAYMENT OF TAX DEDUCTED AT SOURCE FOR THE PERIOD 2008-2009SOURCE FOR THE PERIOD 2008-2009 P1(A): COPY OF THE CHELAN EVIDENCING PAYMENT OF TAX DEDUCTED AT SOURCE FOR THE PERIOD 2008-2009SOURCE FOR THE PERIOD 2008-2009 P1(B): COPY OF THE CHELAN EVIDENCING PAYMENT OF TAX DEDUCTED AT SOURCE FOR THE PERIOD 2008-2009SOURCE FOR THE PERIOD 2008-2009 P1(C): COPY OF THE CHELAN EVIDENCING PAYMENT OF TAX DEDUCTED AT SOURCE FOR THE PERIOD 2008-2009SOURCE FOR THE PERIOD 2008-2009 P2:COPY OF THE CHELAN EVIDENCING PAYMENT OF TAX DEDUCTED AT SOURCE FOR THE PERIOD 2009-2010SOURCE FOR THE PERIOD 2009-2010 P2(A): COPY OF THE CHELAN EVIDENCING PAYMENT OF TAX DEDUCTED AT SOURCE FOR THE PERIOD 2009-2010SOURCE FOR THE PERIOD 2009-2010 P2(B): COPY OF THE CHELAN EVIDENCING PAYMENT OF TAX DEDUCTED AT SOURCE FOR THE PERIOD 2009-2010SOURCE FOR THE PERIOD 2009-2010 P2(C): COPY OF THE CHELAN EVIDENCING PAYMENT OF TAX DEDUCTED AT SOURCE FOR THE PERIOD 2000-2010SOURCE 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 TAKENBE TAKEN P7:COPY OF THE SHOW CAUSE NOTICE DATED 26/12/14 ISSUED AGAINST SMT.K.K.MINI.SMT.K.K.MINI. RESPONDENTS' EXHIBITS ------------------------------------- NIL. / TRUE COPY / P.S.TO JUDGE A.K.JAYASANKARAN NAMBIAR, J.------------------------------- W.P.(C).NO.1461 OF 2015 (G) ----------------------------------- Dated this the 15[th] day of January, 2015 J U D G M E N T The petitioner is a Panchayat, and in the writ petition, it isaggrieved by Ext.P3 and P5 notices issued to it by the 1[st] respondentin connection with recovery of penalty amounts that were confirmedon 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 Actagainst the penalty orders, due to financial constraints, it will not beable to honour the payments that are now demanded from it, withinthe period insisted upon by the 1[st] respondent. It is also pointed outthat, on account of Ext.P5 notice that has been issued freezing thebank accounts of the petitioner, the petitioner is not able to carry onits activities including payment of wages to its employees. In thatfactual scenario, the limited prayer of the petitioner now, is for thegrant of an installment facility for effecting the payments due to the1[st] respondent. 2. I have heard Sri.C.E.Unnikrishnan, the learned counselappearing for the petitioner, Sri.Jose Joseph, the learned Standingcounsel appearing for the 1[st] respondent as also Sri.DevanRamachandran, the learned counsel appearing for the 3[rd] respondent. On a consideration of the facts and circumstances of the case asalso the submissions made across the Bar and also taking into accountthe plea of financial hardship urged on behalf of the petitioner, Idispose the writ petition with the following directions:- (i) If the petitioner pays an amount ofRs.5,00,000/- on or before 15.2.2015 and thereafterpays the balance amount due under Ext.P3 notice,together with accrued interest, in three equal andsuccessive monthly installments commencing from15.4.2015, then further proceedings pursuant toExts.P3 and P5 notices shall be kept in abeyance bythe 1[st] respondent. (ii) The petitioner is permitted to operate thebank account covered by Ext.P5 notice, and theoperation of Ext.P5 notice shall stand suspended tothat extent for the time being. (iii) It is made clear that if the petitionercommits a default in respect of any of theinstallments, he will lose the benefit of this judgmentand the 1[st] respondent will be free to continueproceedings against the petitioner from the stage atwhich they presently stand. prp A.K.JAYASANKARAN NAMBIAR JUDGE