Khushi Doshi
Published on: March 8, 2022 at 13:46 IST
On Monday, the Income Tax Department requested more time to respond to a Notice issued by the Gujarat High Court regarding a Tax Demand on Death Compensation received by the next of kin of a woman killed in the 1986 Pan Am Flight 73 Hijacking.
The Court wanted to know if such Aid awarded by a Foreign Court could be considered “Income.”
The I-T department has sought to reopen the assessment for Fiscal Years 2013-14 and 2014-15, claiming that the compensation amount was not shown in Dalal’s I-T returns.
Dalal filed a Petition with the Gujarat High Court in January after receiving a Notice from the I-T department last year challenging the Taxman’s decision to levy Income Tax on the compensation amount.
The Petitioner claims that the compensation amount is not income and thus cannot be taxed. During the hearing, Dalal also mentioned that the I-T department’s investigation wing had issued a summons in 2014, to which he had responded.
The Petitioner also stated that he had responded to all inquiries about Bank Transactions.
On January 24, a Division Bench comprised of Justices JB Pardiwala and Nisha Thakore issued a Notice to the I-T department to respond to the Petitioner’s contentions, calling it a “Unique” case.
The issue will be revisited on March 14.
Also read:
What is Income Tax Appellate Tribunal?
