Nahas Kakkattummal Vs ITO (Kerala High Court)
Summary: The appellant approached the Kerala High Court in a writ appeal after the learned Single Judge declined to exercise writ jurisdiction and relegated him to the alternative statutory remedy under the Income Tax Act, 1961. The dispute concerned amounts received by the appellant while pursuing postgraduate medical studies. According to the appellant, the amounts were stipend and not salary.
The appellant’s counsel contended that the assessment order had been issued by relying “blindly” on documents supplied by the University where the appellant was studying and drawing stipend, in which the sums were shown as salary. It was submitted that the appellant was admittedly a postgraduate student and that the amount received was stipend statutorily paid under law and in accordance with mandatory guidelines of the National Medical Commission. On that basis, it was argued that the Assessing Authority could not assess the receipts as salary.
Alternatively, the appellant sought liberty to produce additional documents before the Assessing Authority. Counsel pointed out that even the University communication relied upon by the Assessing Authority categorically certified that the appellant had been admitted to an MD/MS postgraduate course as a Junior Resident. It was submitted that such students were covered by the regulations of the NMC, which prohibited payment of salary but mandated stipend. The appellant also relied upon Ext.P5, which certified that he was a bona fide PG student of the University, and contended that the letters relied upon by the Assessing Authority were contrary to that certificate.
