The Hindu : Andhra Pradesh News : Tax blues for dealers

Online edition of India's National Newspaper
Wednesday, Mar 23, 2005

Andhra Pradesh

Andhra Pradesh

Tax blues for dealers

By Our Legal Correspondent

HYDERABAD, MARCH 22. While cases pertaining to validity of the new excise policy are being adjudicated, the Wine Dealers Association filed a new writ petition in the High Court complaining about the action of the Income-Tax Department.

The petitioner contended that I-T officials had asked Excise Superintendents of all districts to submit the demand drafts with details of the persons who had presented them towards payment of the new licence fee. Under the new policy, all aspirants for retail wine outlets are required to deposit part of the licence fee.

Accordingly, thousands of persons had deposited huge amounts for licence.

`Illegal action'

The authorities intended to select the licensees through draw of lots. The I-T Department had claimed that persons who claimed low income had deposited lakhs of rupees. The department wanted all the relevant material for further scrutiny. The wine dealers complained that this action was illegal.

A Bench, comprising Justice G. Bikshapathy and Justice P. S. Narayan, directed the Excise Department authorities not to send the bank drafts to the I-T department and posted the case for hearing after two weeks.

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