Mayawati seeks early disposal of I-T violation case

Mayawati took strong exception against Centre for trying to keep the case of alleged income tax violation against her pending despite having no merit in it.

Uttar Pradesh Chief Minister Mayawati on Friday took strong exception against the Centre for trying to keep the case of alleged income tax violation against her pending despite having no merit in it and sought for its quick disposal by the Delhi High Court.

Senior Advocate and BSP leader S C Mishra,appearing for the Chief Minister,said that the appeal filed by Income Tax Department (ITD) against its Tribunal’s order giving her clean chit is pending in the High Court for the last one and half year due to the department taking numerous adjournments.

Mishra made the allegation after the government pleaded for adjournment in the case on the ground that the Additional Solicitor General Parag Tripathi was out of station.

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A bench of Justices B D Ahmed and Valmiki Mehta,however,expressed its inability in giving early date and posted the matter for further hearing to February 24.

The court was hearing an appeal filed by ITD challenging the Income Tax Tribunal’s decision not to tax the movable and immovable properties given to her by BSP workers during her birthday celebration in 2004.

Alleging that she had tried to evade payment of tax by showing “sham transactions” in the assessment year 2003-04,the department has sought setting aside of the Tribunal’s order.

“The assessing officer had clearly shown that purchases as well as gift transactions were sham transactions which had been performed only with the intent to evade payment of tax,” the Centre said in its petition.

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The Tribunal on November 30,2007 had held that gifts amounting to Rs 65 lakh were given to Mayawati by her supporters out of love 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.

“The Tribunal wrongly came to the conclusion…the fact that gifts were given out of natural love of donors was unquestioned,” the Centre said in its petition.

Mayawati had contended that the immovable property worth Rs 62.72 lakh and cash payments of Rs two lakh in question were gifts to her by her supporters.

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The Centre also alleged that the Tribunal did not consider all the relevant material placed before it by the IT department.

“The Tribunal ignored essential relevant material and has consequently misdirected itself in law in dismissing the IT department’s appeal,” the Government said,adding that “the tribunal has erred in law in holding that validity of the gifts has been proved”.