Friday, September 23 2005 20:02 Hrs (IST) - World Time -

New Delhi: The Supreme Court today (Sept 23, 2005) issued notices to spinning mills in Tamil Nadu on an appeal filed by Income Tax department against the Madras High Court order giving relief to them in a case in which Union Finance Minister P Chidambaram's wife Nalini was engaged as counsel for the department.

Nalini had withdrawn as the counsel of Income Tax Department, Madurai, recently as it led to a major political embarrassment to the Finance Minister.

A Bench of Justice Ruma Pal, Justice AR Lakshmanan and Justice R V Raveendran agreed to hear Special Leave Petition filed by the Deputy Commissioner of Income Tax (Madurai) challenging High Court verdict giving relief to 43 spinning mills, including the Sri Karpagambal Mills, said to be owned by Chidambaram's brother.

Solicitor General G E Vahanvati appeared for the Income Tax Department seeking stay of the April 29 High Court judgement in this regard.

The Income Tax had lost the case before the Commissioner of Income Tax (Appel), Income Tax Appellate Tribunal and High Court which pertains to assessment year 1987-88.