HC quashes IT notice to Vijay Kumar

Justice Anitha Sumanth, while setting aside the ground of the show-cause notice that approval of the Central Government for exemption was not produced, said “In my considered view, the reference to approval of Government of India does not only connote a paper conveying approval and bearing the stamp and seal of the Central Government but any material available in public domain indicating recognition for such services rendered inpublic interest.”

“The petitioner has been recognised by the Central Government on several occasions for meritorious and distinguished services and from the information available in public domain, it is seen that he was awarded the Jammu and Kashmir Medal, Counter Insurgency Medal for meritorious service (1993) and the President’s Police Medal for Distinguished Service (1999). Specifically, for his role in nabbing Veerappan, he was awarded the President’s Police Medal for Gallantry on the eve of Independence Day in 2005. What more! If this does not constitute recognition by the Centre for service in public interest, for the same purposes for which the State Government has rewarded him, I fail to under what it is for,”the judge said

On October 18, 2004, Veerappan was killed in an encounter by the Special Task Force team led by Vijay Kumar. In recognition of the ‘special and commendable’ service, the then AIADMK government, led by then chief minister J Jayalalithaa, issued a government order dated October 28, 2004, sanctioning Rs 54.29 crore towards coast of allotting 773 plots to the entire STF team including the petitioner. As per the order, Vijay Kumar was allotted a plot in Anna Nagar west extension worth Rs 1.08 crore. On December 15, 2009, the petitioner sold the property for a consideration of Rs 1.99 crore.

Claiming that the income acquired by the petitioner through such sale of the property would attract capital gain tax, the department issued a show-cause notice demanding tax stating that the approval of exemption by the Government of India was not produced.