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HC restrains IT from taking coercive action against Ponmudy

The judge directed the IT's standing counsel to file a response on this plea by February 27 and asked not to take any coercive actions against the petitioner till then.

HC restrains IT from taking coercive action against Ponmudy
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Madras High Court; Minister Ponmudy

CHENNAI: The Madras High Court had directed the Income Tax not to take coercive action against minister Ponmudy in proceedings initiated against him for allegedly receiving an illegal payment of Rs.60 lakhs from mining baron J Sekar Reddy linked SRS mining company.

Justice Abdul Quddhose passed the direction on hearing a petition filed by Ponmudy. The DMK leader, through senior advocate P Wilson, prayed for a direction to quash the proceedings initiated by the IT demanding him to pay a huge sum of tax dues which is higher than the quoted amount allegedly received from the mining company.

The judge directed the IT's standing counsel to file a response on this plea by February 27 and asked not to take any coercive actions against the petitioner till then.

The main grounds raised by the senior lawyer for the petitioner was there was not even an iota of evidence to show that his client had received Rs.60 lakhs illegally from the SRS mining firm.

He further submitted that the tax department had initiated the proceedings apparently on the basis of the materials seized from the SRS mining premises saying that Rs.60 lakhs were paid to "Villupuram VIP Ponmudi". He further claimed that such reference was in no way connected to the petitioner.

Wilson argued that though his client asked the IT to furnish the material evidence, the IT was not ready to produce the same.

He further noted that when he sought the cross-examination of IT's side regarding the SRS mining case, IT was not ready to conduct the cross-examination.

It is also noted that another case of such nature connected to SRS mining and former local administration minister SP Velumani had come before Justice Abdul Quddhose. The allegation against Velumani was that he infused Rs.7 crores into the SRS mining to distribute the same amount to various people for the 2016 assembly election.

The judge had adjourned both matters to February 27.

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