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HC quashes show-cause notice to former IPS officer

Chennai: The Madras High Court on Thursday quashed an I-T department”s show-cause notice to former IPS officer K Vijayakumar, demanding capital gain tax on sale of land given to him by the Tamil Nadu government for his role in eliminating sandalwood smuggler Veerappan.

Madras High Court today quashed an I-T department”s show-cause notice to former IPS officer K Vijayakumar, demanding capital gain tax on sale of land given to him by the Tamil Nadu government for his role in eliminating sandalwood smuggler Veerappan.

Vijayakumar, who led Operation Cocoon against forest brigand Veerappan in 2004 killing him in an encounter, was allotted plots along with the other members of Special Task Force by the then AIADMK government for their ”commendable” service.

In 2009, the former IPS officer sold the portion of his share of land for Rs 1.99 crore.

Claiming that the income of the petitioner through such sale would attract capital gain tax, the income-tax department had issued the show-cause notice stating that the approval of exemption by the Centre was not produced. Aggrieved, the petitioner, who is at present senior security advisor in the Union Home Ministry, moved the court challenging the notice.

He submitted that the reward awarded by the state in recognition of his service in public interest is exempted of tax under the Income Tax Act.

Allowing the petition, Justice Anitha Sumanth quashed the show-cause notice.

The petitioner has been recognised by the Central government on several occasions for meritorious and distinguished services and from the information available in public domain, it is seen that he was awarded the Jammu and Kashmir Medal, Counter-Insurgency Medal for meritorious service (1993) and the Presidents Police Medal for Distinguished service(1999).

Specifically for his role in shooting down Veerappan he was awarded the Presidents Police Medal for Gallantry on the eve of Independence Day in 2005.

She said, Seen in the context of the recognition by the Centre of the petitioners gallantry, the approval of the Centre in this case is rendered a fait accompli.”

PTI

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