Madras High Court dismisses plea challenging I-T notice

Chennai: Madras High Court has declined to entertain a petition from Advantage Strategic Consulting Private Limited in Nandanam, a firm engaged in consultancy services, which challenged a notification of the principal commissioner of income tax. Kartik Chidambaram, son of former Union finance minister P.Chidambaram is allegedly associated with the petitioner. “The impugned notification cannot be faulted on the grounds raised by the petitioner,” said Justice T.S. Sivagnanam while dismissing the petition.

The Enforcement Directorate conducted search operations in the office premises of the petitioner and the residences of its directors under section 137 of the Foreign Exchange Management Act on December 1, 2015. Subsequently, the IT department conducted a search in the office premises of the petitioner firm and the residences of its directors in exercise of the powers under section 133 (A) of the Act. While so, the impugned notification has been issued by the Principal Commissioner of Income Tax-1, transferring the petitioner’s cases to a different officer, who was within the city.

The court found that there has been an agreement between the two Heads of Department and the petitioner cannot plead for an opportunity to be granted before an order of transfer, as there was no such statutory requirement under the Act, rather, the said procedure has been specifically excluded. Further, this court was satisfied that there were reasons recorded, as has been mentioned by referring to the chain of events, the judge added.