Court Allows Tax Payment Extension Due to Lockdown Financial Constraints

The High Court of Madras, under Mr. Justice R. Subramanian, disposed of a case challenging the Principal Commissioner of Income Tax's order directing payment of 20% of tax due by a specific date. The petitioner, facing financial constraints due to lockdown, requested an extension. The court, considering the circumstances, directed the petitioner to pay 10% of the tax by 30.09.2020 and the remaining 10% by 31.12.2020, with no further extensions permitted. No additional costs were awarded, and the associated miscellaneous petition was closed.

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Issues: Challenge to order of Principal Commissioner of Income Tax directing payment of 20% of tax due, request for extension of time due to financial crunch, consideration of bonafide by petitioner, disposal of writ petition with specific directions.

The High Court of Madras, presided over by Mr. Justice R. Subramanian, heard a case challenging the order of the Principal Commissioner of Income Tax, dated 11.03.2020, directing the petitioner to pay 20% of the tax due by 30.03.2020 while staying the tax demand. The petitioner, represented by Mr. V.S. Jayakumar, sought an extension to pay the tax due, citing financial difficulties due to the lockdown. On the other hand, Mr. A.P. Srinivas, the Standing Counsel for the department, emphasized the need for the petitioner to demonstrate bonafide intentions. After considering the arguments and the overall situation, the court disposed of the writ petition with specific directions. The petitioner was ordered to pay 10% of the tax due by 30.09.2020 and the remaining 10% by 31.12.2020, with a clear instruction that no further extension would be granted. The judgment concluded with a decision of no additional costs and the closure of the connected miscellaneous petition.

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