The senior citizen was allowed to pay pre-deposit of 20% income tax appeal in 18 instalments considering the financial issues, thus the Madras High Court refused to waive the deposit.
Kanakiliyanallur Narayanan Nehru, the assessee is a senior citizen, filed the writ petition challenging the order disposing of the stay petition issued by the Principal Commissioner of Income Tax ( PCIT ) related to an assessment order for the assessment year 2012-13.
The assessee had filed an appeal before the appellate authority, which had been pending for over four years. The issue arose when the interim stay granted earlier lapsed, prompting Nehru to file a stay petition in August 2023. The petition sought relief from the mandatory 20% pre-deposit required for appealing the assessment order.
The assessee’s counsel cited instruction No.1914 and its amendments, emphasizing that financial stringency alone should not determine the waiver of the 20% pre-deposit. He argued that the entirety of the facts and circumstances should be considered.
Additionally, he urged for the appeal’s expeditious disposal, noting that more than four years have passed since its filing and highlighting the petitioner’s senior citizen status. Referring to the guidelines issued on 07.03.2024 for swift appeal resolution, he contended that the case merits such treatment due to both the substantial tax demand and the petitioner’s age.
Mr. B. Ramanakumar, senior standing counsel representing the respondents, argued against complete waiver due to protective additions made in similar cases. However, the court found the order granting assessee the option to pay in instalments appropriate, given the circumstances.
The bench of Justice Senthilkumar Ramamoorthy observed that the PCIT appeared to have taken into account the financial stringency pleaded by the petitioner and had permitted the petitioner to make the pre-deposit in 18 instalments. Thus, the court did not find any reason to interfere with the order.
Despite citing financial constraints and referring to relevant instructions and guidelines for waiver, the court did not waive the deposit entirely but allowed the assessee to pay it in 18 instalments.
Consequently, the High court directed the third respondent to expedite the disposal of assesse’s appeal within four months from the date of the court’s order.
Mr.G.Baskar and Mr.K.Ramana Kumar Senior Standing Counsel appeared for the assessee and respondents respectively.
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