HC issues notice to Mayawati on Centre's tax evasion plea

HC issues notice to Mayawati on Centre's tax evasion plea The Delhi High Court has sought a response from UP Chief Minister Mayawati on a petition filed by the Centre challenging the Income Tax Appellate Tribunal's decision giving her a clean chit in a disproportionate assets case. Alleging that she had tried to evade payment of tax by showing "sham transactions" in the assessment year 2003-04, the Centre on Wednesday sought setting aside of the Tribunal's order. A Bench comprising Justices Madan B Lokur and V B Gupta directed the BSP supremo to file her reply by 19th September, when the matter would be taken up for further hearing. "Assessing officer had clearly shown that purchases as well as gift transactions were sham transactions which had been performed only with the intent to evade payment of tax," the Centre said in its petition. The Tribunal on 30th November last had held that gifts amounting to Rs 65 lakh were given to Mayawati by her supporters out of love and affection and they were not taxable income. The Centre, however, submitted that the Tribunal erred by accepting her contention on the source of her income. The cash and property presented to the BSP leader should be taken as part of her annual taxable income. "The Tribunal wrongly came to the conclusion...the fact that gifts were given out of natural love of donors was unquestioned," the Centre said in its petition. Mayawati had contended that immovable property worth Rs 62.72 lakh and cash payments of Rs two lakh in question were gifts to her by her supporters. The Centre also alleged that the Tribunal did not consider all the relevant material placed before it by the IT department. "The Tribunal ignored essential relevant material and has consequently misdirected itself in law in dismissing the IT department appeal," the Government said, adding that "the tribunal has erred in law in holding that validity of gifts has been proved".

"Loved reading this piece by SANJAY DIXIT?
Join LAWyersClubIndia's network for daily News Updates, Judgment Summaries, Articles, Forum Threads, Online Law Courses, and MUCH MORE!!"

Join our Telegram group

Join our Whatsapp group