O Panneerselvam had challenged the order under section 153C of the Income Tax Act, 1961.
Chennai:
The Madras High Court on Thursday refused to grant an interim stay against an income tax notice to AIADMK coordinator O Panneerselvam relating to an assessment order.
The former chief minister had challenged the order under Section 153C of the Income Tax Act, 1961, holding that the assessment/revaluation order was issued after March 31, 2021, when the section was dropped.
A division bench of Acting Chief Justice Munishwar Nath Bhandari and Justice PD Audikesvalu observed that according to the petitioner, the same change relating to Section 148 of the Act has been applied to the search and seizure notices as well.
“However, it is not clear what will be the period of limitation and whether notices issued after March 31, 2021 will need to follow a different procedure as compared to those issued before April 1, 2021,” the bench said. he said.
The court noted that standing counsel AP Srinivas, appearing for the Income Tax Department, submitted that the law is very clear and it is clearly laid down that for searches initiated on or after April 1, 2021, this amended procedure Which will be applicable even when the search is started. Will continue to be governed by the old procedure prior to April 1, 2021.
“Though a debatable matter is made out and the matter needs to be considered, no interim order is sought forthwith,” the bench said.
The court directed issuance of notice to the non-appearance parties and said that the counter affidavit should be filed within four weeks from the date.
The judges adjourned the matter for six weeks.
It also clarified that any step, including the assessment order passed at the conclusion of the search and seizure process, would follow the outcome of the petitions.
,