CHENNAI: In a setback to former chief minister O Panneerselvam, the Madras high court on Thursday refused to stay operation of notices issued by the income tax department demanding payment of 82.3 crore tax arrears.
The notices were issued by the department based on materials seized during the raids conducted in industrialist J Sekhar Reddy’s premises in 2016.
Based on the materials seized, the department ordered reassessment of returns filed by Panneerselvam for the financial 2015-16 and ascertained the tax due as 20 lakh.
Similarly, for the assessment year 2017-18 the department demanded Rs 82.12 crore as tax and penalty for non-disclosure of income.
Aggrieved, Panneerselvam filed the present petitions challenging the demand. When the pleas came up for hearing, counsel for the petitioner submitted that in view of changes brought to the proceedings under Section 148 of the Income Tax Act, notices must have been issued only by following the new procedure.
The bench then directed the department to file its counter by December 8. tnn
Source: https://timesofindia.indiatimes.com/city/chennai/madras-hc-refuses-to-stay-rs-82-crore-income-tax-notice-sent-to-former-cm-o-panneerselvam/articleshow/87924009.cms
