2023 (1) TMI 1221 - HC - Income Tax

Company official and petitioner to comply with tax department directives for Form 30B issuance

Xufeng Chen Versus Union Of India & Anr.

The court directed the company's official and the petitioner to appear before the Income Tax Department for necessary documentation. Upon submission, Form ... Seeking no objection certificate from the Income Tax Department in order to leave India - no objection certificate is not being issued as the Petitioner does not have a PAN number - HELD THAT:- The company i.e., the Petitioner’s employer, has submitted Form 30A under the Income Tax Act, 1961 giving an undertaking to the Commissioner of Income Tax and applied for the issuance of the No-Objection Certificate (NOC) under Form 30B, on behalf of the Petitioner. The said Form 30B is to be issued by the Income Tax Department. However, the issuance of the same seems to have been delayed. The case of the Petitioner is that the company i.e, his employer has given an undertaking as per Form 30A of the Income Tax Act, 1961 to the Income Tax Department in respect of any income tax liability which may become due and payable. Accordingly, reliance is placed upon the duly filled Form 30A which has been certified by the employer. As submitted by ld. Counsel for the Income Tax Department that if the company appears before the Income Tax Department or furnishes requisite documents relating to the Company and the Petitioner, the NOC under Form 30B, would be issued expeditiously. Let the company’s official along with the Petitioner appear before the Income Tax Department on 7th February, 2023 - On the said date whatever documents or undertakings are required from the Petitioner or his employer, shall be submitted to the Income Tax Department and Form 30B shall be issued within two weeks thereafter. Upon receiving the NOC under Form 30B, the Petitioner shall then leave India. The requisite permit/exit clearance shall be extended till 15th March, 2023 within which period the Petitioner shall make all necessary arrangements to leave India. Issues:1. Extension of stay in India for a Chinese national.2. Delay in issuance of No Objection Certificate (NOC) by the Income Tax Department.3. Requirement of PAN number for obtaining NOC.4. Undertaking by the employer for tax liability.5. Instructions to appear before the Income Tax Department.Analysis:1. The petitioner, a Chinese national, sought an extension of stay in India due to multiple exit permits issued by the Foreigners Regional Registration Officer. The petitioner arrived in India in January 2020 for work purposes and continued to stay beyond the visa expiration date. 2. The delay in issuing the No Objection Certificate (NOC) by the Income Tax Department was highlighted. The employer had submitted Form 30A and applied for NOC under Form 30B on behalf of the petitioner, but the issuance was delayed. The petitioner's lack of a PAN number was cited as a reason for the delay in obtaining the NOC. 3. The petitioner's need for a PAN number to acquire the NOC was emphasized. The petitioner applied for a PAN card in November 2021, but the visa had expired, and a Leave India Notice was served, requiring an NOC under Form 30B from the Income Tax Department for departure. 4. The employer provided an undertaking through Form 30A to the Income Tax Department regarding the petitioner's tax liabilities. The employer's certification with a PAN number was relied upon to expedite the issuance of the NOC under Form 30B for the petitioner's departure. 5. The court directed the company's official and the petitioner to appear before the Income Tax Department for necessary documentation on a specified date. Upon submission of required documents, Form 30B would be issued within two weeks, allowing the petitioner to leave India by a specified date, with pending applications disposed of and liberty granted to approach the court.This detailed analysis covers the issues raised in the legal judgment, addressing the extension of stay, delay in NOC issuance, PAN requirement, employer's undertaking, and instructions to appear before the Income Tax Department for resolution.