Court issues notice to Mayawati in income tax case

April 2nd, 2008 - 7:54 pm ICT by admin  

A file-photo of Bahujan Samaj Party

New Delhi, April 2 (IANS) The Delhi High Court Wednesday issued a notice to Uttar Pradesh Chief Minister Mayawati asking her as to why gifts given to her should not be considered taxable. A division bench comprising Justices Madan B. Lokur and V.B. Gupta directed Mayawati to file her response by Sept 19.

The central government had challenged the Income Tax appellate tribunal’s decision that gifts given to the Bahujan Samaj Party (BSP) leader by her supporters were not taxable.

The tribunal in its decision said that gifts given to her “are out of love and affection” and did not fall under the category of taxable income.

The tribunal accepted Mayawati’s plea that immovable property worth Rs.6.2 million and cash payments of Rs.1.2 million were the gifts given by her supporters.

The government contended that the cash and property presented to the BSP leader should be taken as part of her annual income.

The Income Tax department asked Mayawati to pay tax on the gifts for the assessment year of 2003-04.

But she refused to do so, stating that the gifts by the supporters were meant for the party fund.

The decision to challenge the tribunal ruling came in the wake of strained ties between the BSP and the Congress in recent months.

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