DMK complains to HC of Income Tax proceedings on the verge of elections

Dravida Munnetra Kazhagam (DMK) on Thursday complained to the Madras High Court that the Income Tax officials had carried out a search and seizure operation in the residence of its general secretary Duraimurugan in 2019 but had decided to conduct those assessment proceedings along with that of the proceedings of the party, and a charitable trust run by the party, exactly on the verge of Assembly elections this year.

Appearing before Justice Anita Sumanth, senior counsel P. Wilson questioned the validity of the orders passed by the Commissioner of Income Tax (Exemptions) this year to transfer the tax assessment files relating to DMK as well as DMK Charitable Trust to an Assistant Commissioner in Chennai Central Circle, who was already handling the files related to Mr. Duraimurugan, “in order to facilitate a coordinated investigation.”

Pointing out that the search and seizure operations with respect to Mr. Duraimurugan were conducted when his son Mr. Kathir Anand contested the elections from Vellore Parliamentary constituency in April 2019, the senior counsel said: “That search was conducted two years ago but the transfer orders are being passed only on the eve of Assembly elections now because DMK is the principal opposition party in the State,” he said.

The counsel also wondered how two unconnected assessment proceedings could be dealt with together. “Merely because the house of Mr. Duraimurugan was raided relating to candidature of Mr. Kathir Anand, can that be a reason to transfer the files of DMK Charitable Trust to the same officer? We are not doing business with Mr. Durai Murugan or Mr. Kathir Anand,” he told the court while urging it to quash the transfer orders.

Further, providing an analogy, he said: “It is like saying that Wilson is a member of the Bar Association and since we have raided his house, we will transfer the assessment files of the Bar Association also to the officer investigating Wilson’s case.” Alleging complete non application of mind by the Commissioner before passing the transfer orders, the counsel said the officer had also failed to provide acceptable reasons.

“Merely saying ‘coordinated investigation’ is not a reason. He (Commissioner) has to say in what way the search and seizure in Mr. Duraimurugan’s house is related to the trust,” he added. After listening to him in part, the judge adjourned the case to March 30 for continuing the hearing and also for Additional Solicitor General R. Sankaranarayanan to make his submissions on behalf of the Income Tax department.

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