K. J. Paul Vs DCIT (Kerala High Court)
Corporate Deadlock Froze Tax Filings: Kerala HC Orders Decision on Five-Year Belated-Return Request Within One Month
Summary: In K.J. Paul & Seaqueen Builders Pvt. Ltd. v. DCIT, W.P.(C) No. 27267 of 2026, decided on 14 August 2026, the Kerala High Court considered a company’s request for an opportunity to file income-tax returns that could not be submitted for several years because of a serious management dispute. The Court did not itself permit filing of the delayed returns or decide their admissibility. It directed the DCIT to consider the company’s pending representation, provide an opportunity of hearing & pass an appropriate order in accordance with law within one month.
Relevant Facts
The first petitioner, K.J. Paul, was a subscriber, shareholder & director of the second petitioner, Seaqueen Builders Pvt. Ltd. A serious dispute arose concerning management & control of the company between the petitioners & another person, P. Johnny.
The dispute generated prolonged litigation before multiple forums, including the National Company Law Appellate Tribunal. The conflict affected the company’s administration & prevented those claiming management rights from effectively dealing with its statutory affairs.
The corporate dispute eventually reached the Supreme Court through Civil Appeal No. 6732 of 2026. By order dated 11 May 2026, the Supreme Court brought the controversy to a conclusion. As a consequence of the settlement or directions, P. Johnny was permitted to transfer his shares to K.J. Paul & exit from the company.
