The Indore bench of Madhya Pradesh High Court has declined to stay the ongoing income tax department action against Praveen Kakkar, officer on special duty (OSD) to Madhya Pradesh chief minister Kamal Nath. Kakkar had moved court on Tuesday requesting to declare the raid against him as illegal. While representing Kakkar, senior lawyer Kabil Sibal advanced arguments on question of jurisdiction of tax authorities to exercise power under Section 132 of Income Tax Act, media coverage and use of Central Reserve Police Force (CRPF).
Passing the order, division bench of Justice Prakash Shrivastava and Justice Vivek Rusia said, “So far as the question of grant of stay is concerned, considering the fact that search and seizure is undisputedly over, panchnama has been prepared and the ASG is filing the reply within one week, we are of the opinion that no case for grant of stay at this stage is made out.”
Since counsel for petitioner had submitted that he wants to amend the petition, the court ordered for listing the matter on Monday. Additional Solicitor General Sanjay Jain while appearing for respondents orally opposed the petition by submitting that there is due exercise of power by the competent tax authorities who followed the requisite procedure.
Having regard for factual issues raised in the matter, the court was of the opinion that it would be more appropriate that instead of orally opposing the petition, the ASG files reply to averments made therein. The ASG said he would file reply within one week.