The Madras High Court, on Wednesday, refused to interfere with the re-assessment proceedings against the former Union Minister Dayanidhi Maran. Justice S.M. Subramaniam was hearing a petition challenging the proceedings initiated by the Income Tax Department in 2015 and 2016 for reopening the assessments for the financial years 2008-09 and 2009-10.
The Court rejected the petitioners’ plea on the ground that courts could not encourage the practice of stalling the income tax proceedings right at the preliminary stage of issuance of notices. He said the petitioners were free to respond to the notices and prove their innocence before the department.
The Court pointed out that “Contrarily, based on the preliminary information gathered by the Assessing Officer, the notice issued for the purpose of reopening of the assessment would not provide a cause of action for filing of the present writ petitions and this Court has no hesitation in holding that the writ petitions are not only premature, even on merits the writ petitioner has failed to establish an acceptable reason to grant the relief, as such, sought for.”
“The writ petitioner (Mr. Maran), who was holding a high position as a Union Minister (during the assessment period), is duty-bound to respond to the notice to prove his innocence or otherwise. Contrarily, the writ petitions have been filed at the notice stage itself, and the same will hamper all further proceedings,” the judge said.
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