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 Income Tax Addition Made Towards Unsubstantiated Share Capital Is Eligible For Section 80-IC Deduction: Delhi High Court

Centre playing politics with law
January, 29th 2010

Uttar Pradesh Chief Minister Mayawati has accused the Central Bureau of Investigation (CBI) of pursuing motivated probe into her alleged disproportionate assets at the behest of the Centre while refusing to do the same in case of former Bihar Chief Minister Lalu Prasad.

Mayawati also cited contradictory stands taken by the CBI and Law Ministry against her in the apex court between 2007 and 2009. She pointed out that while the CBI told apex court on an affidavit in March 2009 that a fit case of amassing disproportionate assets was made out against her, Additional Solicitor-General Gopal Subramanium (presently Solicitor-General) had given her clean chit against plea to launch similar prosecution against Taj corridor case in 2007.

On the basis of Subramniums opinion to the Uttar Pradesh Governor, who was approached by the CBI to launch DA case against her, the CBI could not pursue the case.

In her affidavit filed in the SC on Wednesday, Mayawati said, The moment the BSP had withdrawn its support from the ruling coalition at the Centre, the Union Government started using its old weapon of the CBI so as to harass the petitioner (Mayawati). The case will come up for hearing before the SC on Thursday.

Claming that the Centre was all out to victimise her despite clean chit both from ASG Subramanium and the Income Tax Appellate Tribunal (ITAT), Mayawati said her case was no different from that of Bihar strongman, who was acquitted in a DA case by the trial court.

Instead of filing an appeal against the acquittal, the CBI sat tight over the case till the Bihar Government moved an appeal before the Patna High Court. To defend its stand, the CBI opposed the States plea by suggesting Lalu got a clean chit from the ITAT. But in her case, the CBI pursued with the proceedings irrespective of the ITAT clean chit.

She further accused the agency of concealing this fact (ITAT clean chit) to the Supreme Court in its affidavit.

Mayawati asked the court to consider if anything survived in the hollow allegations made against her and to rule whether a case of quashing the FIR was made out in these circumstances.

On its part, the CBI had claimed that a case of disproportionate assets is made out from the unaccounted wealth possessed by her and her family members. To suggest its bonafide, the agency further indicated in its earlier affidavit that the FIR was a result of the apex court order passed on September 18, 2003 allowing the agency to initiate fresh investigations into the disproportionate assets possessed by Mayawati, an offshoot of the Taj Corridor scam, being monitored by the court in a public interest litigation.

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