RK Nagar bypoll case: I-T recovery proceedings stayed
TNN | Feb 8, 2020, 01.33 PM IST
TNN | Feb 8, 2020, 01.33 PM IST
CHENNAI: In a relief to an income tax assessee whose premises were raided along with that of state health minister C Vijayabaskar in April 2017, leading to the cancellation of bypoll to RK Nagar constituency, the Madras high court has stayed all recovery proceedings against the assessee.
The income tax officials, who raided the premises of R Nainar Mohammed in Chennai on April 7, 2017, in continuation of the search warrant issued in the name of state health minister C Vijayabhaskar, recovered Rs 2.94 crore from him.
However, alleging procedural violations, Nainar Mohammed filed the present petition in the high court saying the search that took place on April 7, 2017 pertained to financial year 2017-18 and the returns accounted for the entire seized cash. Therefore, the very basis of the unexplained or undisclosed income for the years 2017-18 and 2018-19 does not arise, because the income has already been shown and the assets are illustrated in the accounts.
Justice Anitha Sumanth, before whom the case came up for hearing on Friday, directed the income tax to file its reply by February 24, and added: "Let no recovery proceedings be initiated till then." The petitioner approached the court challenging the assessment order of deputy commissioner of income tax, central circle for the year 2018-19, assessing his total income as Rs 4,52,48,500, including the amount seized at the time of search.
At the time of search on his premises, several slips apparently showing boothwise expenses pertaining to RK Nagar assembly elections were recovered. Apart from the slips and and papers totalling Rs 64 lakh, an amount of Rs 2.95 crore was also seized. Originally he had declared an income of Rs 1.49 crore.
The income tax officials, who raided the premises of R Nainar Mohammed in Chennai on April 7, 2017, in continuation of the search warrant issued in the name of state health minister C Vijayabhaskar, recovered Rs 2.94 crore from him.
However, alleging procedural violations, Nainar Mohammed filed the present petition in the high court saying the search that took place on April 7, 2017 pertained to financial year 2017-18 and the returns accounted for the entire seized cash. Therefore, the very basis of the unexplained or undisclosed income for the years 2017-18 and 2018-19 does not arise, because the income has already been shown and the assets are illustrated in the accounts.
Justice Anitha Sumanth, before whom the case came up for hearing on Friday, directed the income tax to file its reply by February 24, and added: "Let no recovery proceedings be initiated till then." The petitioner approached the court challenging the assessment order of deputy commissioner of income tax, central circle for the year 2018-19, assessing his total income as Rs 4,52,48,500, including the amount seized at the time of search.
At the time of search on his premises, several slips apparently showing boothwise expenses pertaining to RK Nagar assembly elections were recovered. Apart from the slips and and papers totalling Rs 64 lakh, an amount of Rs 2.95 crore was also seized. Originally he had declared an income of Rs 1.49 crore.
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