The Kerala High Court has directed a Non-Resident Indian, a United Arab Emirates Resident to pursue available statutory remedy, when he challenged the imposition of income tax penalty orders through a Writ Petition.
A Non-Resident Indian (NRI) residing in the United Arab Emirates has filed the writ petition challenging income tax notices issued by the 3rd and 4th respondents for the collection of Rs. 28,56,391/-.
The petitioner impugns Exhibits P-4 and P-5 notices, claiming that they were issued unfairly. In response to the petitioner’s plea, the court issued an interim order on March 22, 2022, directing the petitioner to appear before the Tax Recovery Officer, following the submission of relevant documents and notices.
The petitioner complied with the court’s directive and appeared before the Tax Recovery Officer, who handed over copies of assessment and penalty orders under Sections 144 and 147 of the Income Tax Act, 1961, dated December 23, 2019, and November 9, 2020, respectively. Despite the attachment of the petitioner’s property, the court has temporarily halted the sale proceedings.
The petitioner’s counsel highlights that the petitioner’s brother has already filed an appeal against the assessment and penalty orders, pending before the Commissioner of Appeals; CIT (Appeals) – III.
In response, Mr. Naveeth R. Nath, counsel for the Revenue, contended that the petitioner has not challenged the assessment and penalty orders through statutory means. He suggested that the court stay the sale of the attached property until the Appellate Authority reviews the appeal.
Acknowledging the Revenue’s suggestion, the court disposes of the writ petition, granting the petitioner the liberty to file an appeal before the Appellate Authority within three weeks. The petitioner must include applications for condonation of delay and stay.
The Appellate Authority will provide a link for uploading the appeal and applications. Until a decision is reached on the stay application, the sale proceedings for the attached immovable properties will remain suspended.
This resolution allows the petitioner to pursue legal remedies within the framework of the Income Tax Act, 1961, ensuring a fair and just process for addressing the tax dispute.
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