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Income Tax department demands rupees 10 crore
June, 23rd 2009

In fresh trouble for Uttar Pradesh Chief Minister Mayawati, the Income Tax Department has filed two appeals in the Income Tax Appellate Tribunal (ITAT) demanding additional tax of about Rs 10 crore for her income for the financial years 2005-2006 and 2006-2007.

The income includes gifts received by BSP supremo Mayawati from her party workers on her birthday.

For the financial year 2005-2006, the Chief Minister had declared her income as Rs 1.59 crore but the Income Tax Department assessed her income at Rs 4.34 crore and demanded a tax of Rs 1.2 crore.

For the financial year 2006-2007, she showed her income as Rs 2.45 crore but the department assessed her income at Rs 22 crore and demanded an income tax of Rs 9 crore.

The Income Tax Department had challenged the two orders of Commissioner of Income Tax dated April 15 and April 30, 2009 vide which the commissioner did not allow the department to raise additional demand of tax on additional income of over Rs 20 crore which was reportedly collected by her on her birthday, which was celebrated as "arthik sahyog diwas"(economic assistance day), in the form of gifts from her party workers and well wishers.

The income from gifts is being treated by the department as income from her vocation of politics.

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