Withdrawal of Deposit of Capital Gains Tax for Medical Requirements: Kerala HC directs Expeditious Consideration of Revision Petition, stays Recovery [Read Order]

The Kerala High Court has directed the Principal Commissioner of Income Tax ( Kochi ) to expeditiously consider a revision petition filed by Alekutty Oommen, a senior citizen seeking access to deposited capital gains tax for medical needs.

The petitioner filed the income tax return for the assessment year 2021-2022, disclosing an income of Rs.10,55,800/- under the head Capital Gains, and paid an amount of Rs.1,63,494/- as the tax payable.

As per regulations, the petitioner deposited the sale consideration of the property sold in the Capital Gains Scheme Account with Punjab National Bank.

After paying tax as per the return, the petitioner submitted representation before the Income Tax Officer to pass orders to enable her to withdraw the amount under bank deposit. However, the petitioner was issued with a notice demanding Rs.4,14,026/- as income tax for the assessment year 2019-20.

The petitioner submitted a representation informing the Income Tax Officer that the entire tax due has been paid and requesting to pass appropriate orders to enable her to withdraw the amount under deposit for the purpose of meeting medical requirements. The petitioner has also filed a revision petition before the additional Principal Commissioner of Income Tax.

The single bench of Justice Murali Purushothaman directed the Principal Commissioner to consider the revision petition as expeditiously as possible, at any rate, within a period of four months from the date of receipt of a copy of this judgment.

The court also ordered a stay on any coercive action against the assessee based on the tax demand notice until the petition is decided.

To Read the full text of the Order CLICK HERE

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