HC refuses to quash IT order to transfer jurisdiction of tax evasion case against Santiago Martin's wife, daughter

CHENNAI: The Madras High Court refused to interfere in the income tax (IT) department proceedings in transferring the case initiated against lottery king Santiago Martin’s wife, Leema Rose, and his daughter, Daisy Aadhav Arjuna.

The IT can assess the incriminating materials seized from the business premises where the registered office is situated and continue the proceedings at a different site away from the registered office, wrote Justice Krishnan Ramasamy while dismissing the petitions of Martin’s family members.

The petition was moved by Suvail Real Properties, represented by Leema Rose and Daisy Aadhav Arjuna, seeking to quash the notification issued by the IT to transfer the case from Coimbatore circle to Kolkata circle.

The main contention of the petitioners is that since they reside in Coimbatore and have registered business offices there, but the IT has issued a notification to transfer the proceedings to Kolkata without providing any opportunity to hear them.

“The impugned notification is in violation of principles of natural justice and directly in contrary to provisions of Section 127 (1) of the Income Tax Act,” the petitioners added.

In October 2023, the IT officers from Kolkata circle conducted a search operation at the business premises of the petitioners’ at Coimbatore. They seized several incriminating materials concerning the alleged lottery tax evasion charges that took place in Kolkata.

The judge wrote that if the petitioners’ contention is accepted and allowed, the Coimbatore jurisdictional officer will be directed to proceed with the assessment, which would be difficult for the officers as they do not have any material, but the place of business falls under both jurisdictions.

It would not cause any prejudice to the petitioners due to the notification as no adverse order was passed except for the transfer of assessment, read the order.

The order added, “It would be appropriate to transfer the cases in the present matter as the Kolkata circle officers have traced out and seized some incriminating material on the involvement of the petitioners in the lottery business for the evasion of taxes within their jurisdiction.”

For further proceedings, the IT officers issued notice to petitioners stating that the case is transferred from Coimbatore jurisdiction to Kolkata.

In October 2023, the IT officers from Kolkata circle conducted a search operation at the business premises of the petitioners’ at Coimbatore. They seized several incriminating materials concerning the alleged lottery tax evasion charges that took place in Kolkata