New Delhi (ILNS): A group of distressed seafarers and merchant navy officials moved the Supreme Court against a finance ministry notification that denied them any tax relaxation for a 60-day period within their 182-days (or more) stay in India for the financial year 2019-2020. As per the notification they are to be assessed for that period for Income Tax.
The court has issued notice on a plea which challenges the validity, legality and propriety of the letter issued by the Government of India declining tax relaxation to the seafarers.
A bench of Justices Rohinton F. Nariman, Navin Sinha and K. M. Joseph sought the Centre’s response on the petition, filed by advocate Raj Kishore Choudhary on behalf of the Merchant Navy Officer’s and Ladies Association (MNOLA).
The petitioners have submitted that on May 8, the Ministry of Finance, Department of Revenue, Central Board of Direct Taxes issued letters declining to provide tax relaxation to them for the said period. This is for those who stayed for more than 182 days in India during the financial year. According to the letter they will have to submit to income tax assessment of the year 2019-2020.
The petitioners said that the latter ignored the factual situation, that the COVID-19 outbreak was witnessed across the whole world in the month of December 2019.
The petitioners include those who are currently staying in India and hence income tax laws are applicable to them. The plea said that the officials could not go on board due to the lockdown.
Order attached here;
Merchant-Navy-ILNS