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Last Updated : Mar 06, 2018 10:22 PM IST | Source: PTI

Kalanithi Maran liable for SpiceJet 'tax defaults': Additional Solicitor General

The IT department informed Madras High Court that Kalanithi Maran was liable for the 'tax deducted at source defaults' as chairman and director of SpiceJet Limited with effect from November 15, 2010.

The Income Tax department on Tuesday informed the Madras High Court that Kalanithi Maran was liable for the 'tax deducted at source (TDS) defaults' made by the company as he was inducted as chairman and director of SpiceJet Limited with effect from November 15, 2010.

Just because the company has a managing director it does not mean that the chairman/director does not take part in the management of the company, Additional Solicitor General (ASG) G Rajagopalan submitted before Justice M Duraiswamy.

Rajagopalan was filing the counter to Sun Group chairman Maran's plea assailing an Income Tax department order declaring him as the principal officer of low-cost carrier SpiceJet and making him liable for the alleged tax dues of the company when it was owned by him.

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Rajagopalan was appearing for the Finance Ministry and Assistant Commissioner of IT department, Delhi.

"The fact that the petitioner resides in Chennai does not mean that he is not involved in the management of the company as in today's world, it is not necessary to be physically present in the corporate office for administration of the firm," Rajagopalan submitted.

The ASG also questioned the jurisdiction of the Madras High Court to hear the matter, saying the IT office, which had passed the order, and the registered office of SpiceJet were in New Delhi. "The petition is not maintainable as no cause of action, whatsoever has arisen within the jurisdiction of this high court..."

Also, the petitioner has filed a criminal original petition in the Delhi high court to quash the criminal complaint filed against him in connection with the tax default, he added.

The judge posted the matter to March 9 for further hearing as senior counsel PS Raman for Maran sought time to file counter in the matter.
First Published on Mar 6, 2018 10:14 pm
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