Navigating Financial Distress: A Legal Analysis of Progressive Tax Instalment Judgments

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..... e entity's liability to pay income tax in instalments. The judgments, spanning from 2018 to 2024, highlight the evolving judicial approach towards allowing flexibility in tax payments under financial distress, balancing the interests of the taxpayer and the tax authorities. Background In 2018, a High Court judgment ( 2018 (5) TMI 2168 ) addressed an appeal against an order allowing the p .....

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..... Court, after hearing the counsel, declined to interfere with the High Court's decision, thereby upholding the instalment payment schedule set by the High Court​​. Legal Analysis Judicial Approach to Instalment Payments The High Court's initial decision to allow instalment payments reflects a pragmatic approach. It balanced the taxpayer's financial difficulties aga .....

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..... ities to be flexible and responsive to taxpayers' financial situations. This approach can help maintain a balance between efficient tax collection and preventing undue hardship on taxpayers. Legal Principles and Precedents The judgments align with legal principles that emphasize fairness and reasonableness in tax collection. They also set a precedent for future cases where taxpayers face .....

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