Chennai: The Madras high court has directed the high court registry to place the decade old Rs 4.97 crore wealth tax assessment dispute between the income tax department and jailed VK Sasikala, a close aide of former Chief Minister J. Jayalalithaa, before the Madras high court Chief Justice to post it before a division bench.
When the case relating to the assessment framed by the I-T and the subsequent Rs 10.13 lakh tax demand made by the IT department in 2001, came up for hearing a division bench of Justice S. Manikumar and Justice Subramonium Prasad passed the order. The bench requested the CJ to post matter before a bench in which Justice Subramonium Prasad is not a part of it. The bench has recused to hear the plea, as Justice Subramonium Prasad had represented Sasikala before the Supreme Court in many cases before his elevation as a judge.
The issue pertains to assessment year 1996-97. According to prosecution, Sasikala failed to file return of wealth under the Wealth Tax act for the assessment year, though she was found to be owner of assets worth substantial value.
As she failed to file reply to the notice issued by IT, the assessing officer was forced to proceed to frame the wealth tax assessment on an ex-parte basis determining the net wealth of Rs 4.97 crore and demanding a tax of Rs 10.13 lakh which is inclusive of interest. Challenging the assessment order, Sasikala filed an appeal before the Commissioner of Wealth Tax (Appeals) which was dismissed by the commissioner.
Subsequently, she moved the Income Tax Appellate Tribunal. The tribunal while allowing her appeal, directed the department to determine the value of the immovable properties as per section 7 of the Act. Aggrieved by the order, I-T has filed an appeal before high court.
