Mayawati hits out at IT department | delhi | Hindustan Times
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Mayawati hits out at IT department

delhi Updated: Jan 07, 2009 19:44 IST

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Uttar Pradesh Chief Minister Mayawati on Wednesday hit out at Income Tax Department in the Delhi High Court and alleged that her income for financial year 2001-02 was reassessed without following the mandatory provision of giving her a notice.

"The department initiate proceeding against me without serving me the notice which is mandatory in law. Income Tax says very clearly that re-assessment cannot be done without issuing notice. So the proceeding is to set aside as it is also beyond the limitation period," Senior Advocate Harish Salve, appearing for BSP supremo said.

The Income Tax, however, refuted the contention and said that notice was issued to him which was not accepted by her.

"Notice was issued on March 24, last year at her Humayun Road residence in Delhi but it was said that she had shifted to Lucknow. The notice was then sent by mail to her Nehru Road address. It was then re-directed to Chief Ministerial residence at Kalidas Road and then it returned back to the department," advocate RD Jolly, appearing for IT department contended.

"After sending the notice by post it is beyond my control and if the notice was not accepted then it should be deemed to have been served and the department can go ahead with the re-assessment of her property," Jolly said before a Bench comprising Justices Vikramjit Sen and Rajiv Shakdher.

Salve, on the other hand, refuted his contention and said that Mayawati never refused to accept the notice and she did not redirect it.

"I would withdraw the petition if it is shown that the notice was redirected by Mayawati or by her agent," Salve said.

The High Court was hearing a petition filed by the Chief Minister challenging IT department's move to re-assess her income for the year 2001-02.

The Bench after hearing contentions of both the sides reserved its judgement.

Mayawati is also facing a case of alleged tax evasion in the High Court for the assessment year 2003-04 which was filed by the IT department against Income Tax Appellate Tribunal's decision giving her a clean chit.

The Tribunal in November 2007 had held that her supporters out of love gave gifts amounting to Rs 65 lakh to Mayawati 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.