Refusing to stay the Income Tax notice served to former Chief Minister O Panneerselvam directing him to pay Rs 82.32 crore, the first bench of Acting Chief Justice Munishwar Nath Bhandari and Justice PD Audikesavalu directed to the department to file its counter.
Pointing out the notifications issued on March 31 and April 27, Panneerselvam challenged the order contending that the reassessment was done under the old provision that expired on April 1, and sought the assessment to be done under the amended provision.
“It is unclear as to what the period of limitation would be and whether notices issued subsequent to March 31 would require a different procedure to be followed than the procedure followed prior to April 1,” submitted senior counsel Vijay Narayan who appeared for Panneerselvam. However, I-T counsel AP Srinivas said that it was clearly stipulated that searches initiated before April 1 would continue to be governed by the old procedure.
Recording the submissions, the court held that though the matter required consideration as a case was made out, no interim order was required immediately. The hearing was then adjourned to December 8.