The Ministry’s move comes in the backdrop of strained ties between Mayawati’s BSP and the Congress in the recent months after the initial bonhomie when she stormed back to power in the May Assembly elections.

Senior officials of the Ministry and Revenue Department on Tuesday said the High Court would be approached for remedial action.

“Action will be taken as per the law,” Central Board of Direct Taxes (CBDT) spokesperson said when asked to comment on the Centre’s plan of action after the Income Tax Appellate Tribunal Order (ITAT) gave a clean chit to Mayawati in a disproportionate assets case and reprieve to the BSP supremo.

The department could file the appeal by April against the ITAT order which held that the BSP supporters had given gifts ( which included cash and house properties) out of love and affection. The case pertains to the assessment year 2003-04.

Finance Minister P Chidambaram also referred to Mayawati’s tax issue when he said the BSP leader had declared her gifts as income and paid tax since 2006-07. He said the income tax department does not have any objection to this.

The Finance Minister made the reference while talking to reporters at a lunch hosted by him on the occasion of Pongal in New Delhi.