HC stays I-T action against IAS officer Malay Srivastava

Bhopal: Madhya Pradesh high court has ordered income tax department against initiating any action against senior IAS officer Malay Srivastava who is now principal secretary, urban administration. The court has also stayed I-T's proceedings against the officer. Case pertains to inputs about distribution of illegal gratification amounting to Rs 267 crore, given to influential people by a Hyderabad-based company to acquire a multi-crore sewerage line project in Indore.
Double bench comprising Justice S K Gangele and Justice Ashok Kumar Joshi ordered, "At the relevant time, the petitioner was working as commissioner in urban development and administration department. The assessing authority assessed the petitioner and calculated the liability of the petitioner in regard to payment of income tax on the ground that the petitioner had received certain amount in awarding contract. The liability has been fastened on the petitioner on the basis of entries made in some loose papers seized from the house of one Mukesh Sharma in search operations. Inference has been drawn to the effect that there was following entries in the loose paper."
"Prima facie, there is no specific proof that the petitioner (Malay Srivastava) had received the amount. In view of the aforesaid facts of the case and nature of the case, it is directed that no coercive steps be taken against the petitioner on the basis of the assessment order Annexure P/30 dated 17.06.2016. The operation of notice of demand Annexure P/31 shall also remain stayed up to next date of hearing," court ruled on Wednesday.
I-T department had stumbled upon the details during a search operation on Mukesh Sharma's Indore premises in July 2008. IT officials claim they came across various slip pads which showed evidence of commissions being taken by the then minister, principal secretary and commissioner of urban development department as well as mayor and commissioner of Indore Municipal Corporation for awarding the contract to Simplex Infrastructure and Hyderabad-based Nagarjuna Construction Company.