The Supreme Court has requested a response from the Income Tax Department regarding notices issued to a committee assisting the court in sealing residential premises used for commercial purposes. The court also summoned the concerned tax officer for an explanation.
Justices AS Oka and Pankaj Mithal on Monday gave the directions after considering a report filed by the three-member committee headed by Bhure Lal. The three-member panel also comprising former bureaucrat Vijay Chhibber and Major General (Retired) Som Jhingon informed the court that the panel does not earn any revenue. The committee pointed out that the amount charged as fees for de-sealing properties is remitted to the Supreme Court registry.
Senior advocate Guru Krishna Kumar, serving as amicus curiae, who assisted the court further told that even the said committee had received three notices from the tax department. The committee clarified that the funds held by them were not taxable income but were meant to be transferred to the Supreme Court, where they are placed in a fixed deposit account.
The court expressed concern and directed the committee to continue making quarterly deposits of processing fees starting from September 1, while asking for action against the tax officer responsible for issuing the notices. Kumar emphasized that the tax demand had not been withdrawn, despite the committee's reply to the Income Tax Department stating it was not liable for taxes under Section 133(6) of the Income Tax Act, which typically applies to interest earned from savings accounts.
It will proceed further after the Income Tax Department responds to the court's query.
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