HC stays proceedings on tax notice to Virbhadra

Terming the notice as vague and sketchy, Himachal Pradesh high court on Thursday stayed proceedings, including assessment on two notices of the income tax department to chief minister Virbhadra Singh.

Terming the notice as vague and sketchy, Himachal Pradesh high court on Thursday stayed proceedings, including assessment on two notices of the income tax department to chief minister Virbhadra Singh.

The court observed that the notices were not in conformity with section 148 of the Income Tax Act and it would not be even possible for the assessee to reply to a “vague and sketchy” notice.

A division bench comprising justice Rajiv Sharma and justice Sureshwar Thakur passed these orders on petition filed by Virbhadra Singh, challenging the notices on the ground that the income tax department had erred in issuing notice for reassessment on the basis of revised returns, whereas the agricultural income was non-taxable under Income Tax Act. The court also directed the Income Tax department to file a reply within two weeks.