Tamil Nadu - Chennai

Premananda’s writ petitions dismissed

CHENNAI: The Madras High Court on Tuesday dismissed writ petitions by Swami Premananda alias Premkumar, who is now in Central Prison, Cuddalore, challenging income-tax assessment orders.

In its order on the petitions, a Division Bench comprising Justices Prabha Sridevan and K.K. Sasidharan said there were no merits in the writ petitions. Whenever time was asked for it was given and only after sufficient opportunity was given to Swami Premananda that the assessment orders were passed.

Swami Premananda, who headed an ashram, accumulated properties. His premises was raided by income tax officials on November 23 and 29, 1994. Following this assessment orders were passed for assessment years 1985-86 to 1995-96.

Challenging the assessment orders, appeals were filed and the Commissioner of Income Tax (Appeals) remanded the matter with certain directions to the assessing officer. Swami Premananda filed a writ petition contending that the trustee of the Sri Premananda Trust, Melpatchakudi village, Fathima Nagar in Pudukottai district should be given an opportunity before assessment. In November 1999, the petition was disposed of with certain directions. In March 2000, assessment orders were passed. The assessee filed revision petitions which were dismissed on merit. Hence, these writ petitions.

Senior counsel V. Ramachandran, appearing for the assessee, submitted that the assessee was not given a fair opportunity. The Senior Standing Counsel for the Income Tax Department, Murali Kumaran, said at no point of time did the assessee complain that he had been denied the opportunity for want of examination of all the foreign donors and it was being raised for the first time in the present writ petitions.

In the order, the Bench rejected the petitioner’s ground of judicial indiscipline among the authorities.

The directions by the Commissioner of Income Tax (Appeals) to examine each and everyone of the foreign donors was impossible of compliance.

The law did not expect anyone to do the impossible. The assessing officer had complied with the CIT (Appeals) directions fully in spirit.

The Judges said the release deeds by which the right to immovable property was said to have been released were not duly stamped nor registered in accordance with law and could not be relied upon.

The Trust deed was alleged to have been written in July 1994 and the recitals were that the Trust owned no property. Hence, the income could not be assessed in the hands of the Trust.

The foreign donors had sent it to the assessee impressed by his charitable activities with directions that he should spend it for a specific purpose.

Therefore they had sent it only to him and it was for the assessee to spend or not to spend in accordance with the directions. But, in any way, the amounts had ‘come in’ to him and therefore, they were income in his hands, the Bench said.

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