Madras HC allows Senior Citizen to Pay 20% Income Tax Appeal Pre-deposit in 18 Instalments

In a recent decision, the Madras High Court addressed the appeal of Kanakiliyanallur Narayanan Nehru against the Income Tax Officer’s order, focusing on the pre-deposit requirement pending appeal. This case highlights the court’s consideration of financial constraints, particularly for senior citizens.

The petitioner filed an appeal regarding the assessment year 2012-13, which had been pending for over four years. Seeking interim relief, the petitioner applied for a stay on the tax demand, eventually leading to a petition before the second respondent in August 2023. The court’s order, dated June 6, 2024, examined the petitioner’s plea, emphasizing the hardship caused by the mandatory 20% pre-deposit of the disputed amount.

Senior Counsel argued for the petitioner, invoking guidelines emphasizing the need for expeditious disposal of appeals, especially for senior citizens facing prolonged litigation. The court acknowledged these arguments, pointing out that financial stringency alone should not dictate the decision on pre-deposit waivers. Despite potential liability, the court allowed the petitioner to pay the required amount in 18 monthly installments, reflecting a nuanced approach balancing financial obligations with the petitioner’s circumstances.

On behalf of the respondents, Mr. B. Ramanakumar countered, highlighting protective additions and potential confirmations of demands, suggesting no grounds for overturning the order granting installment relief.