HC directs I-T dept to halt proceedings against actor Arvind Swamy

The Madras High Court today ordered the Income Tax department not to proceed against actor Arvind Swamy over a notice seeking Rs 96.41 lakh as advance tax for the assessment year 2018-19 till the time the impugned proceedings "shall not be given effect to".

"The Assistant Commissioner shall consider the application of Arvind Swamy under Form 28-A and till such time the impugned proceedings shall not be given effect to," Justice T S Sivagnanam said.

The judge was passing interim orders on a petition from Arvind Swamy, seeking to quash an I-T notice dated March 26 to the manager of a bank, that claimed Rs 96,41,650 as advance tax from the actor for the assessment year 2018-19 and directed him to pay the amount immediately.

In his petition, the actor submitted that he moved the court after coming to know from the bank that the amount in his account has been blocked by the I-T department and that the bank had stated that a pay order would be issued once it re-opened on April 3.

Swamy contended that the I-T department's failure to recall the notice, despite him pointing out that more than adequate advance tax had been remitted, based on the estimated income disclosed in Form 28-A, was completely untenable.

Moreover, the notice was issued under Section 226(3) of the I-T Act in complete violation of the principles of natural justice, he said.

Swamy said any attempt to transfer the amount specified in the notice from his bank account to that of the department would amount to '"unjust enrichment' and was arbitrary, he said.

It was also contrary to Article 14 of the Constitution, (equality before law), he submitted, adding there was no legal basis that subsists on the basis of which the department could continue to demand attachment of his money with the bank when the returns would show he had already remitted more than adequate advance tax in respect of his estimated income.