Tamil Nadu News

Income Tax department says Kalanithi Maran is liable for TDS defaults made by Spice Jet

Income Tax department rejects Kalanithi Maran's claims that he was only a non-executive chairman of the company who had no say in the management of the firm

Published: 07th March 2018 12:23 PM  |   Last Updated: 07th March 2018 12:23 PM   |  A+A-

Madras high court.|Express file photo

By Express News Service

CHENNAI: Rejecting the claim of media baron Kalanithi Maran that he was only a non-executive chairman of the company who had no say in the management of the firm, Income Tax department has submitted before the Madras High Court that Kalanithi Maran was inducted as chairman and director of Spice Jet Limited with effect from November 15, 2010 and is liable for TDS defaults made by the company.

Additional solicitor-general G Rajagopalan made the submission on behalf of the Union Ministry of Finance and Assistant Commissioner of Income Tax department, Delhi on a plea moved by Kalanithi Maran assailing an order of the department dated November 3, 2014 declaring him as the principal officer of Spice Jet. Such a finding by the I-T department would make him liable for the alleged tax dues of the company.

Opposing the contention of Maran that he was only a non-executive chairman of the company who has no say in the management of the firm, the counter affidavit filed by Income Tax department said, “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. 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.”

When he was inducted as chairman of the company in 2010, he had expressed his plan of doubling their current fleet size. It is therefore clear that the petitioner had taken part in the conduct of the business of Spice Jet, it added.Justice M Duraiswamy posted the plea on March 9 for further hearing.

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