No relief for Christy in tax evasion case

Justice V Parthiban and Justice Anita Sumanth before whom the plea came up directed that Rs 213 crore deposited by the firm with the court would remain in the interest-bearing account till the final order is passed by the assessing authority.

The issue pertains to raids conducted by the IT department on July 5 last year in various premises of the firm. After the raids, the department alleged that it had unearthed undisclosed income to the tune of Rs 1350.29 crore on July 9, 2019.

Christy and its founder TS Kumaraswamy moved the High Court after six months to declare the search as illegal and unconstitutional and to prohibit the department from using, divulging or relying upon the material, books of account, documents and electronic records seized through the raids. Counsel for Christy proposed a deal to deposit a total of Rs 50 crore if they are permitted to withdraw

Rs 213 crore deposit and assurance from IT that not to attach properties of the firm.

Rejecting the proposal, IT department standing counsel submitted that the estimated tax evasion by the company is about Rs 2,056 crores and that the department has powers to attach further properties of the firm till the final order is passed in the assessment.

It may be noted that Christy group of companies has State government’s contract to supply eggs, dhal and edible oil to the mid-day meal scheme of the State.