Shillong, Sep 29: The Meghalaya High Court on Tuesday stayed Income Tax notices demanding over Rs 4 crore from UDP legislator Paul Lyngdoh.
The order was passed by a division bench of Justice Hamarsan Singh Thangkhiew and Justice Biswadeep Bhattacharjee while hearing a writ petition filed by Lyngdoh challenging the impugned notices.
Senior counsel K. Paul, appearing for Lyngdoh, argued that the cumulative demand of Rs 4 crore was illegal as the petitioner is a member of Scheduled Tribe community and is exempted under Section 10(26) of the Income Tax Act, 1961. He prayed for suspension of the impugned notices.
Senior Standing Counsel Dr. P. Agarwal, for the Income Tax department, opposed the plea, submitting that the petitioner has an alternate remedy of appeal under Section 246(A) of the Act and that disputed facts cannot be gone into in a writ petition.
After hearing both sides, the court directed the department to file an affidavit within three weeks and ordered that till the next date, the impugned notices shall not be given effect to.
The matter will be heard on October 29.
