Relief for Kalanithi Maran in SpiceJet case

Allowing a petition by Kalanithi challenging the November 3, 2014, order of the tax department on various financial years when the company was under his ownership, Justice M Duraiswamy said, “It is pertinent to note that the I-T department has not produced any material to establish that Kalanithi Maran was responsible for the day-to-day affairs of SpiceJet.” 

“In the absence of any material the IT department should not have come to the conclusion that Kalanithi Maran is the principle officer of the company. The reasons given by the IT Department are without any material to substantiate the same,” the judge said. 

Further, stating that unless the I-T department makes out a prima facie case against Kalanithi of his liability and obligation as principle officer involved in the day-to-day affairs of the company under section 278B of the IT Act, he could not be prosecuted for the offences committed by the company, Justice Duraiswamy observed. 

“The main criteria to treat a person as principle officer are that he should have been involved in the management, administration and day-to-day affairs of his company. As no material was produced by the I-T department to establish that the petitioner is the Principal Officer, it is clear that Kalanithi Maran was not involved in the management activities of SpiceJet and the dayto-day affairs of the company and hence he cannot be treated as principle officer,’ the judge added. 

Earlier, during the hearing, Kalanithi’s counsel had submitted that he was only the non-executive chairman and was not involved in the company’s day-to-day affairs. Kalanithi had sold SpiceJet to Ajay Singh in 2015.