While allowing Interim relief, Madras High Court has ordered not to proceed against actor Arvind Swamy over a notice seeking Rs 96.41 lakh as advance tax for the assessment year 2018-19.
Arvind Swamy, an Indian film actor, model, entrepreneur and television presenter known for his work in Tamil cinema had remitted advance tax of Rs 1.25 crore by estimating his return of income for the assessment years 2017-18 and 2018-19.
Later he got a communication from the Income Tax department to pay an advance tax to the tune of 2.51 crore based on the return filed by him for the assessment year 2017-18. While receiving the communication from the department it was alleged that Rs 96.41 lakh has been claimed from his bank account for tax default.
Since the income of Arvind was lower than the previous year he had sent his auditor to the department and later on verification department told him to pay Rs 30 lakh on or before March 15 as the first instalment.
A notice has been issued from IT to the manager of a bank, that claimed Rs 96,41,650 as advance tax from the actor for the assessment year 2018-19 and directed him to pay the amount immediately and blocked aforementioned money in his account.
Being aggrieved with this actor approached High Court seeking plea on said action. “As advised I remitted Rs 30 lakh on March 15. But as I was genuinely unaware of the requirement to file appropriate forms to the department after the remittance, I failed to submit such forms,” the actor reportedly said.
He also pointed that the notice issued by the department under Section 226(3) of the Income Tax Act was the complete violation of the principles of natural justice.
Justice T S Sivagnanam granted the interim relief against the action of department no to proceed against him till the time the impugned proceedings “shall not be given effect to”.
Swamy said any attempt to transfer the amount specified in the notice from his bank account to that of the department would amount to ‘”unjust enrichment’ and was arbitrary.
