While hearing a writ petition filed by Former Union Minister P Chidambaram and his family members, the Madras High Court, on Tuesday, quashed the income tax demand notices for the year 2010-11 seeking payment of tax along with penalty for income earned by them from a 200-acre coffee estate in Kodagu during the financial year 2009-10.
The order was based on its earlier order in November 2017 quashing tax demand against the petitioners on a similar issue.
The petitioner, claiming an exemption of income from sale of coffee subjected to only pulping and drying was accepted, under Section 10(1) of the Income Tax Act from their estate in Coorg in Karnataka as agricultural income, which was allowed then.
When the Court asked the department why the court should not allow the present writ petitions too by following the November 13 order, the I-T department counsel sought time to file a counter affidavit.
Also Read: Madras HC quashes Income Tax Order against P Chidambaram and his Family [Read Order]
Rejecting his plea, the judge said there was no point in adjourning the present cases when the issue was squarely covered by the judgment passed by the court in the writ petitions filed by the same family with respect to the financial year 2009-10. “Don’t look at the cause title [the names of the litigants], look only at the cause,” the judge said and went on to quash the demand notices issued with respect to the financial year 2010-11 too.
When the judge pointed out that the I-T department could always take his orders on appeal, a standing counsel representing the department stated that an appeal would be filed shortly, challenging the November 13 order passed in the writ petitions filed by Mr. Chidambaram, his wife Nalini Chidambaram, son Karti P. Chidambaram and daughter-in-law, Srinidhi Karti Chidambaram, who were the owners of the coffee estate.
