SC seeks income tax dept’s response to notices to panel assisting top court

The committee overseeing the sealing of residential premises used for commercial purposes told the income tax department that the notices issued to it were not maintainable

The Supreme Court has sought a response from the income tax department over notices to the committee assisting the court in sealing residential premises used for commercial purposes and summoned the officer concerned for an explanation.

The court said some action needs to be taken against the income tax officer concerned. (ANI)

A bench of justices AS Oka and Pankaj Mithal on Monday issued the directions after considering a report of the Bhure Lal-led three-member committee, which also includes former bureaucrat Vijay Chhibber and Major General (retired) Som Jhingon. The panel told the court that it does not have any earnings of its own. It said the fee collected for permanent de-sealing of properties is deposited with the Supreme Court registry.

The bench said some action needs to be taken against the income tax officer concerned. Senior advocate Guru Krishna Kumar, who is assisting the court as amicus curiae, told the court the committee has a balance amount of ₹48,863. The committee last month transferred over ₹3.5 crore to the registry.

On August 22, the court directed the panel to make quarterly deposits of the processing fee to the court every three months from September 1.

Kumar informed the court that the committee received three notices despite its reply to the income tax department that it was not supposed to pay taxes. The panel told the department that the money with it was not income and was meant to be transferred to the registry, which puts the money in a fixed deposit account. Kumar requested the court to intervene as the tax demand had not been withdrawn.

The committee told the income tax department that the notices issued to it under Section 133(6) of the Income Tax Act were not maintainable. It argued that this provision is meant to tax the interest earned from savings bank accounts. The committee explained it maintains the funds under the supervision and direction of the court. It added the funds are transferred to the court.