Camelot project: Sukhbir challenges I-T notice in HC

  • HT Correspondent, Hindustan Times, Chandigarh
  • Updated: Sep 19, 2014 10:11 IST

Punjab deputy chief minister Sukhbir Singh Badal has moved the Punjab and Haryana high court, challenging the income tax department’s notice to him for payment of Rs 1.2 crore capital gain on an amount that he is allegedly “yet to receive” from the Tata Housing company as he had given the land for the company’s upcoming Camelot housing project in Kansal, SAS Nagar.

Taking cognizance of the petition, the high court has issued a notice to the income tax commissioner.

Sukhbir has sought directions to the I-T department to withdraw the notice. He has challenged the notice by which the department has asked him to pay capital gain of about Rs 1.2 crore allegedly earned by him in entering into a deal with Tata for the project.

He submitted that the I-T department had wrongly issued him notices to pay the capital gain on the amount that he was yet to receive.

The petition will come up for hearing along with similar other petitions filed by 12 sitting and former MLAs challenging the notices of the department. These petitions are listed for September 27.

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.

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 had recently stayed the construction of the project.

Appearing for the MLAs, their counsel had submitted before the bench that the total amount which the MLAs received was below Rs 30 lakh each and no flat had been given to them as of now. The advocates submitted that the I-T department could not charge tax as they were yet to receive the full amount.

The deputy CM and the MLAs had lost their case before the income tax appellate authority before they moved the high court.

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