Madras High Court dismisses plea by DMK MP D.M. Kathir Anand to quash Tax proceedings for hiding money to distribute money amongst voters
The Madras High Court has dismissed a petition by DMK MP Durai Murugan Kathir Anand seeking quashing of a tax assessment order against him for hoarding money to be distributed among voters.
Facts
Rs.11.49 crores in cash was recovered from the house of Mr. Damodaran and Mrs. Vimala Damodaran in packet with markings such as Alangayam, Pallikonda etc. with the marking of the Municipal Wards, falling under the Vellore Parliamentary Constituency from where the Kathir Anand was contesting. Mr. Damodaran was an employee of the Colleges run by the Trust Durai Murugan Educational Trust in which the petitioner is a Trustee. Along with the cash, details of bus fees/hostel fees/mess fees payable by the students of were found along with the cash of Rs.11.49 crores.
An assessment was done and the said amount was slated to be undisclosed income of Kathir Anand. Kathir Anand via the present petition has submitted that the cash recovered from the house of above couple did not belong to him and therefore, it cannot be added to his total taxable income as undisclosed income contrary to the return filed.
Further, the brother of Mrs. Vimala Damodaran namely, Mr. S. Srinivasan came forward and gave a voluntary statement that the cash belonged to him for distribution to the Voters in the Vellore Parliamentary constituency to secure victory of Kathir Anand in the parliamentary election and that the amount was earned by him in his real estate business
Order.
The Court rejected the above contention observing that under Sections 132(4A) and 292C of the IT Act, the presumption is gainst Kathir Anand since the cash was not found under the control and the possession of the said Mr.S.Srinivasan. It was found in the residence of Mr.Damodaran and Mrs.Vimala Damodaran with packet markings as Alangayam, Pallikonda etc. with the marking of the Municipal Wards, falling under the Vellore Parliamentary Constituency from where the petitioner was contesting.
Further, the Court observed that Mr. Srinivasan coming forward and claiming the money to be his is a mere ploy, ruse to divert attention. The Court stated:
"Mere voluntary sworn statement on the same day by Mr.S.Srinivasan claiming that the seized cash were his, is not sufficient. Mr.S.Srinivasan has not shown himself to be a man of substantial means."
Thus the Court dismissed the petition giving liberty to Anand to file a statutory appeal before the Appellate Commissioner.
The Court also rapped Anand for choosing to file this petition stating,
.Instead of defending himself in the Show Cause Notice proceedings, the petitioner attempted to divert the attention to prolong the longevity of the litigation both before the respondents and now before this Court. It was unwarranted.
Shri Durai Murugan Kathir Anand Vs. Additional Commissioner of Income Tax & Ors.