The Delhi High Court allowed Income Tax officials to reassess the
income of Uttar Pradesh Chief Minister Mayawati for the financial year
2001-2002, ruling that it is not mandatory to send a prior notice to
her for such an assessment.
A bench comprising Justices Vikramajit Sen and V B Gupta dismissed the plea of the BSP supremo who sought exemption from reassessment on the grounds that no prior notice was served to her by the IT-department which is a pre-requisite for it.
The Court held that there is no logic behind Mayawati’s contention and she has failed to prove her case and permitted the IT Department to go ahead with the reassessment of her income for the year 2001-2002.
The IT department had pleaded in the Court that they issued a notice to Ms Mayawati on March 24, 2008 at her Humayun Road residence in Delhi, but as she had shifted to Lucknow the notice was sent to her Nehru Road address there. It was then re-directed to the Chief Minister’s residence in Lucknow, but the notice returned back.
Ms Mayawati challenged the department’s claim to reassess her income as the gifts received by her do not fall under the income tax assessment.
Earlier, the Income Tax tribunal had held that gifts received by Ms Mayawati worth Rs 65 lakh were given to her by her supporters out of love and affection and cannot be treated as a taxable income.
The Centre, however, challenged the tribunal’s order and approached the Delhi High Court stating that cash and property presented to the BSP leader should be treated as part of her annual taxable income and wanted to reassess the income.
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