Seeks Tax Waiver, But HC Says Astrology His Job, Must Pay Dues
Mumbai: In 2001, when Kerala-based astrologer Unnikrishna Panicker predicted that J Jayalalithaa would become Tamil Nadu chief minister, many found it hard to believe. Though Jayalalithaa herself could not contest as she was debarred due to criminal cases pending against her, the AIADMK won the assembly election and she was made the chief minister as a non-elected member of the assembly.
Panicker’s prediction did not go unnoticed by Jayalalithaa’s supporters and he was given Rs 10 lakh for correctly forecasting her victory.
But it is this money, which Panicker claimed was a gift, that has landed Jayalalithaa’s favourite astrologer in the income tax net.
Panicker claimed that the money he received did not fall under the definition of business income and hence, should be exempted from tax.
In the assessment year 2002-03, Panicker had filed return of income disclosing a turnover of Rs 2.67 lakh.
After claiming various expenses, he declared Rs 1.89 lakh as income from his profession. In his statement, Panicker said he had received Rs 10 lakh as contribution from “certain persons” and sought exemption.
Panicker also said he had letters from those persons stating they made the contributions because they were happy about the outcome of the assembly elections and were grateful to him. But this did not convince the taxmen, and the income tax appellate tribunal estimated the tax liability to be around Rs 3 lakh.
Panicker moved the Kerala high court against the tribunal’s order. Last month, the high court rejected his petition and said the income that he received was part of his business and he has to pay tax for it.
“The assessing officer proceeded on the basis that the assessee (Panicker) had rendered certain services in the form of performing poojas and further procedures. This, according to the assessing officer, has to be treated as an income from business. As without rendering service, there was no question of assessee getting such amounts from the persons alleged to have given such amount,” the high court ruled.
Panicker, from Parappanangadi in north Kerala’s Malappuram district, boasts of a marquee clientele that includes corporate honchos and politicians. It was on his advice that Jayalalithaa donated an elephant to the Guruvayur temple in Kerala after the 2001 assembly elections. In 2002, he was also conferred ‘Jyothisha Puraskar’ by Chennai-based Swathithirunal Kalakendram.
Courtesy:
C Unnikrishnan TNN
http://epaper.timesofindia.com/Default/Scripting/ArticleWin.asp?From=Archive&Source=Page&Skin=pastissues2&BaseHref=TOIM/2014/02/05&PageLabel=12&EntityId=Ar01200&ViewMode=HTML
Mumbai: In 2001, when Kerala-based astrologer Unnikrishna Panicker predicted that J Jayalalithaa would become Tamil Nadu chief minister, many found it hard to believe. Though Jayalalithaa herself could not contest as she was debarred due to criminal cases pending against her, the AIADMK won the assembly election and she was made the chief minister as a non-elected member of the assembly.
Panicker’s prediction did not go unnoticed by Jayalalithaa’s supporters and he was given Rs 10 lakh for correctly forecasting her victory.
But it is this money, which Panicker claimed was a gift, that has landed Jayalalithaa’s favourite astrologer in the income tax net.
Panicker claimed that the money he received did not fall under the definition of business income and hence, should be exempted from tax.
In the assessment year 2002-03, Panicker had filed return of income disclosing a turnover of Rs 2.67 lakh.
After claiming various expenses, he declared Rs 1.89 lakh as income from his profession. In his statement, Panicker said he had received Rs 10 lakh as contribution from “certain persons” and sought exemption.
Panicker also said he had letters from those persons stating they made the contributions because they were happy about the outcome of the assembly elections and were grateful to him. But this did not convince the taxmen, and the income tax appellate tribunal estimated the tax liability to be around Rs 3 lakh.
Panicker moved the Kerala high court against the tribunal’s order. Last month, the high court rejected his petition and said the income that he received was part of his business and he has to pay tax for it.
“The assessing officer proceeded on the basis that the assessee (Panicker) had rendered certain services in the form of performing poojas and further procedures. This, according to the assessing officer, has to be treated as an income from business. As without rendering service, there was no question of assessee getting such amounts from the persons alleged to have given such amount,” the high court ruled.
Panicker, from Parappanangadi in north Kerala’s Malappuram district, boasts of a marquee clientele that includes corporate honchos and politicians. It was on his advice that Jayalalithaa donated an elephant to the Guruvayur temple in Kerala after the 2001 assembly elections. In 2002, he was also conferred ‘Jyothisha Puraskar’ by Chennai-based Swathithirunal Kalakendram.
Courtesy:
C Unnikrishnan TNN
http://epaper.timesofindia.com/Default/Scripting/ArticleWin.asp?From=Archive&Source=Page&Skin=pastissues2&BaseHref=TOIM/2014/02/05&PageLabel=12&EntityId=Ar01200&ViewMode=HTML
No comments:
Post a Comment