The Punjab and Haryana high court on Wednesday reserved the judgment in a case in which income tax (I-T) notices were challenged by Punjab deputy chief minister Sukhbir Singh Badal and other politicians.
Sukhbir had moved the court, challenging the income-tax department’s notice to him for payment of Rs 1.2 crore capital gain from the Tata Housing company, as he had given the land for the company’s Camelot housing project at Kansal, SAS Nagar.
He had moved the court in September while similar other petitions filed by 12 sitting and former MLAs challenging the notices of the department were being heard by the court.
The bench headed by justice AK Mittal reserved the order after hearing arguments from the petitioners’ and respondents’ sides. After the rebuttals from the counsels of the petitioners, the court reserved the order on Wednesday afternoon.
Earlier, 12 sitting and former MLAs, including Bibi Jagir Kaur, Sucha Singh Langah, Sewa Singh Sekhwan, Charanjit Singh Atwal, Jagtar Singh Rajla, Gurdev Kaur, Tara Singh Ladal, Sukhdev Singh and Davinder Singh Cheema, had moved the high court in October last year after getting the I-T notices. In all, there are more than 80 petitioners in the case.
The Punjab MLAs’ Cooperative House Building Society came into existence in 2000. As per the agreement of the society’s land with Tata, each MLA was to get Rs 82.5 lakh and a flat in lieu of their plots.
The Supreme Court has stayed the construction of the project. The petitioners’ counsels have pleaded that they were yet to receive the full amount; hence, the tax could not be levied.
The deputy CM and the MLAs had lost their case before the income tax appellate authority before they moved the high court.