2015 (3) TMI 984 - HC - Income Tax

Court sets aside order, remits matter for fresh consideration; petitioner must deposit tax amount. Appearance, objections, documents required.

A. Kaliyaperumal Versus The Chairman Central Board of Direct Taxes, The Director of Income Tax, The Income Tax Officer (OSD), Tax Recovery Officer International Taxation

A. Kaliyaperumal Versus The Chairman Central Board of Direct Taxes, The Director of Income Tax, The Income Tax Officer (OSD), Tax Recovery Officer ... Issues:Petitioner's challenge to proceedings and demand notice by respondents. Failure to consider representations and provide a personal hearing. Request for waiver of interest, fine, and penalty. Opportunity given to petitioner to pay outstanding tax.Analysis:The petitioner, a non-resident Indian working in Singapore, filed an income tax return for 1995-96 declaring nil income. The respondents directed the petitioner to explain the investment in property in Mannargudi, which was reportedly made from the sale proceeds of gold under the NRI scheme. Despite explanations, tax was levied in 2002. The petitioner's appeal was dismissed due to delay, not on merits. Subsequent representations and writ petitions were filed, leading to directions for fresh applications for waiver. The impugned order was passed without considering the petitioner's requests, leading to the current writ petition.The petitioner's counsel argued that the impugned order was illegal as the authorities did not consider the representations or provide a personal hearing. On the other hand, the respondents contended that ample opportunities were given to the petitioner to pay the outstanding tax, interest, fine, and penalty, which the petitioner failed to utilize. The impugned order was passed after considering the petitioner's case as directed by the Court, and thus, no further leniency was warranted.The judge acknowledged the arguments from both sides but, in the interest of justice, decided to give the petitioner another chance. The judge set aside the impugned order and remitted the matter to the authority for fresh consideration, provided the petitioner deposited the entire tax amount demanded. The petitioner was directed to appear before the authority with objections and documents by a specified date. Failure to comply would result in the restoration of the impugned order. The writ petition was disposed of without costs, with a warning of restoration if the petitioner failed to meet the specified requirements.