Chennai: The Madras high court has asked the Income-Tax department to inform the court as to whether there is any legal heir or a valid will has been left behind by former chief minister Late J.Jayalalithaa.
A division bench comprising Justices Huluvadi G.Ramesh and K. Kalyanasundaram orally addressed the questions to senior standing counsel for Income-Tax T.R. Senthilkumar, when the appeal filed by the Principal Commissioner of Wealth Tax came up for hearing.
In the appeal, the Commissioner of Wealth Tax challenged an order of the Income Tax Appellate Tribunal, which set aside his order remitting the wealth tax assessment of Jayalalithaa for the year 1997-98 to the Wealth Tax Officer for fresh consideration.
Originally, since Jayalalithaa has failed to file return of wealth for the assessment year 1997-1998, an assessment was made by the wealth tax officer in the year 2000 determining the net wealth at Rs 4.67 crore. Thereafter, the Commissioner of Wealth Tax found the assessment was erroneous in law and prejudicial to the interest of the revenue.
In his order, the Commissioner of Wealth Tax observed that the wealth tax officer had omitted to include the value of the investment in construction of residential property at Poes Garden sourced from unexplained income of Rs 58.52 lakh, construction of farm house in Hyderabad at Rs 11.72 lakh, gold jewellery valued at Rs 185.82 lakh instead of 383.12 lakh as revealed from DVAC report.
With these observations, the Commissioner of Wealth Tax set aside the wealth tax assessment and remitted the matter back to the wealth tax officer for fresh consideration. Aggrieved against the revision order, Jayalalithaa had filed an appeal with a delay of 2,255 days before the Income Tax Appellate Tribunal. Condoning the delay, the Tribunal had set aside the order of the Commissioner of Wealth Tax. Challenging the same, the present appeal was filed.
In the present appeal, the Commissioner contended that the Tribunal erred in condoning the inordinate delay of 2,255 days, which calls for a strict approach and the principles or guidelines given by the SC court.
The Tribunal erred in quashing the order on the ground that it does not have any legs to stand as it was based on the order of the Income Tax for the assessment year 1997-1998 which was annulled by the Tribunal, was not acceptable. The said order of the Tribunal was challenged before the High Court and was pending, the Commissioner added.
