Madras High Court Asks IT Dept Not To Pass Orders Regarding Centralisation Of Accounts Of DMK & DMK Charitable Trust

The Madras High Court has restrained the Income Tax Department from passing any further orders relating to the centralisation of cases involving the DMK party and the DMK Charitable Trust until an appeal filed by the Principal Chief Commissioner of Income Tax is disposed of. The bench, comprising Chief Justice Manindra Mohan Shrivastava and Justice G Arul Murugan, heard the appeal against a single-judge’s order which had quashed earlier department notifications that transferred the assessments from the Jurisdictional Income Tax Officer (Exemptions) to the Assistant Commissioner, Central Circle. The department had sought this centralisation citing the need for coordinated investigation in connection with searches conducted in 2019 at the premises of DMK leader Duraimurugan and the associated trust. The DMK and the Trust challenged the move on grounds that Section 127 of the Income Tax Act was not properly followed — particularly, that there was no justification given, no agreement between jurisdictional commissioners recorded, and that the assessee was not informed of the reasons. The Court has issued notices to the IT Department, granted interim relief to the DMK and the Trust to prevent any finalisation of assessment or passing of further centralising orders, and scheduled the appeal hearing for October 28, 2025. The order reflects the importance of procedural fairness under the Income Tax Act, especially in transfers, where transparency, notice, and reasoned orders are necessary.