Even as the BJP continues to seek reopening of the criminal investigation against late Win Chadha and Italian businessman Ottavio Quattrocchi for having allegedly received kickbacks from Swedish gunmaker in the Bofors gun deal, the law ministry is set to recommend to the finance ministry to challenge the strictures passed by the two-member Income Tax Appellate Tribunal (ITAT) against it and the department of taxation.
According to sources, the law ministry is sending a note to the finance ministry regarding the December 31-order of the ITAT, which says that kickbacks were paid to the Chadha and Quattrocchi and that they were liable to pay tax in India on such income. The note will say that since the tribunal has passed strictures against the finance ministry and the department of taxation, they ?can and should make an application for expunction of the same. It also suggests that if the ITAT refuses to expunge the remarks, then the aggrieved parties an challenge the entire order in further proceedings.
In their order, the ITAT?s member (judicial) RP Tolani and member (accountant) RC Sharma, while dismissing an appeal by Hersh W Chadha, Chadha?s son, against the IT department?s claim of Rs 52 crore and Rs 85 lakh from his father for the assessment years 1987-88 to 1993-94 & and 1995-96 to 1999-2000, respectively, cite the CBI investigation, the JPC Report into the scam and other material to come to the conclusion that both Chadha and Quattrocchi received money from their part in clinching the deal.
Sources said the ministry is of the opinion that the ITAT has ?completely exceeded? its jurisdiction and authority in making ?unwarranted observations? against Quattrocchi, who was not even a party before the tribunal.
?The ITAT is not a Constitutional court. It is the creature of the statute and hence can only decide a case before it. It has no power to go beyond issues before it. Also, by making sweeping allegations against a person who was not even before it, the tribunal has transgressed its limits. It is also a violation of the principle of natural justice,? said a senior ministry functionary.