Legal Correspondent
Shimla, March 26
In an interim relief to Chief Minister Virbhadra Singh, the High Court today stayed the proceeding initiated by the Income Tax Department by issuing him notices for his revised income tax return.
The order was passed by a Division Bench, comprising Justice Rajiv Sharma and Justice Sureshwar Thakur, on petitions filed by the CM challenging the notices issued by the I-T Department on the ground that the department has erred in issuing notices for reassessment on the basis of revised returns, whereas the agricultural income was non-taxable under the Income Tax Act.
It was alleged in the petition that the notice under Section 148 of the I-T Act was issued by an officer of the rank of DC of Income Tax, whereas the assessment was completed under the provisions of the Act by the Additional Commissioner of Income Tax, which is a higher authority. The assessment completed by a higher authority can’t be reopened by a junior ranked officer.
While issuing notices, the court observed that “prima facie, the notices are not in conformity with Section 148 of the Income Tax Act and it will not be possible for the assesee to reply to such vague and sketchy notices.” It further directed the department to file reply within two weeks.
As per the petition, Virbhadra Singh in his original return filed for 2009-2010, had declared taxable income as Rs 17,08,938 and agriculture income as Rs 7,35,000.
The agricultural income for 2009-10 was revised to Rs 2,21,35,000 in the revised return. Also, in his original return filed for 2011-12, he had declared taxable income as Rs 15,13,712 and agriculture income as Rs 25 lakh. The agricultural income for 2011-12 was enhanced to Rs 1.55 crore in the revised return.