Madras High Court ​stays I-T notice to P Chidambaram for re-assessment

Directing the I-T authorities to file their counter within six weeks, the Judge posted the matter to July 16 for further hearing.

Published: 06th June 2018 07:56 PM  |   Last Updated: 06th June 2018 07:56 PM   |  A+A-

Senior Congress leader and former finance minister P Chidambaram arrive at CBI office in New Delhi on Wednesday. (Express Photo by Parveen Negi)

By PTI

CHENNAI: The Madras High Court today stayed the Income Tax Department's notices issued to former finance minister P Chidambaram seeking reopening of assessment of his I-T returns for 2011-12 as it suspected that his income chargeable to tax had escaped assessment.

Hearing a petition by Chidambaram, Justice T S Sivagnanam granted the interim stay on the proceedings pursuant to the notices dated March 27, 2018 and May 23, 2018 issued by the Assistant Commissioner of Income Tax, Chennai, for re-opening the assessment.

Directing the I-T authorities to file their counter within six weeks, the Judge posted the matter to July 16 for further hearing.

The judge had quashed similar I-T notices issued to Chidambaram pertaining to the assessment years 2009-10 and 2010-11 in November last year and January this year.

When the current petition came up for hearing, Justice Sivagnanam noted that the factual issue was identical to that of the earlier assessment years.

On the issue of reopening of assessment for 2009-10 and 2010-11, the court was convinced that it was not justified and had quashed the notices allowing the Congress leader's plea.

The juge today noted that though the I-T department had filed appeals against the orders quashing the notices, they had not yet been stayed by the division bench hearing them.

"Therefore this court is of the view that the present impugned proceedings shall remain stayed till the department obtained orders from the first bench, hearing the appeals," Justice Sivagnanam said.

Chidambaram in his petition submitted that he had been selling raw coffee grown in his estate in Karnataka without curing and has been claiming exemption of the sale proceeds as agricultural income.

Accordingly, for the assessment year 2011-12, he had claimed exemption of Rs 43.37 lakh as agricultural income under section 10(1) of Income Tax Act.

However, the I-T department issued a notice dated March 27, 2018 under section 148 of the Income Tax Act stating that it had reason to believe that income chargeable to tax for the AY 2011-12 had escaped assessment.

After a communication by his Charted Accountant, the department by a letter dated May 23 last gave the reasons for the reassessment, he said.

Contending that the reassessment notice was illegal and without jurisdiction, Chidambarm prayed the court to quash it.

Stay up to date on all the latest Nation news with The New Indian Express App. Download now
(Get the news that matters from New Indian Express on WhatsApp. Click this link and hit 'Click to Subscribe'. Follow the instructions after that.)

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp