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HYDERABAD: The Telangana High Court issued notices to the Central Board of the Direct Taxes (CBDT), commissioner for income-tax appeals and others for issuing demand notices to the Telangana Building and Other Construction Workers Welfare Board, and orders by the commissioner of income-tax exemption, to pay 20 per cent of outstanding demand amount immediately.
A division bench, comprising Justice Sujoy Paul and Justice Namavarapu Rajeshwar Rao, directed CBDT and others to submit a reply to the contentions of the petitioner, who said that the department had no jurisdiction or authority to demand the tax.
Senior counsel Avinash Desai, representing the petitioner board, argued that it was a statutory board constituted under the provisions of the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996, in 2008. Pursuant to an exemption notification dated 09.11.2017, the petitioner was not required to pay tax. Further, he submitted that the board was a non-profit organisation constituted for the welfare of construction workers.
The bench was inclined to go with the arguments of the senior counsel and viewed that the various courts had interpreted the CBDT office memorandums and opined that the same are directory in nature not mandatory. However, the bench issued notices to the department.
The board was constituted by the Telangana government. The income raised by it by way of cess, registration and renewal fee from building and other construction workers and interest received on bank deposits.
GWMC directed to follow procedure for removing huts in FTL
HYDERABAD: The Telangana High Court made it clear to Greater Warangal Municipal Corporation (GWMC) that if they want to take action or demolish constructions in the full tank level or buffer zones of lakes, they must firs obtain copies of primary or final notifications marking the boundaries and then follow due process of law.
Justice K. Lakshman of the Telangana High Court also made it clear to the authorities that issuing of notices as per the process was necessary and affording an opportunity to the residents to submit their contentions was also required before authorities contemplate any action. The judge also said that if the constructed houses were in the FTL, the authorities could go forward with their action.
The judge was dealing with a petition filed by 127 hut/house dwellers in Survey No. 308 of Warangal town, which is known as the FTL of Chinna Waddepally Cheruvu. The petitioners submitted to the court that they were assigned house-site pattas of 30 to 60 square yards between 2007 and 2013. Recently authorities issued notices to 80 dwellers directing them to vacate the houses, as the structures fell in the FTL limits and they were trying to dispossess some of them without issuing notices. The petitioners argued that the authorities so far did not earmark the FTL or buffer zones of the lakes in Warangal city.
It was brought to the notice of the court that 250 houses had been removed in the FTL of Bhadrakali tank and the authorities submitted that around 329 houses/ huts were constructed in the Chinna Waddepally tank.
The court directed them to follow the due process before taking action and was not inclined to stop the action, but made it clear that they should strictly follow the procedure.
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