Delhi High Court - Orders
Care India Solutions For Sustainable ... vs Principal Commissioner Of Income Tax ... on 22 March, 2024
Author: Yashwant Varma
Bench: Yashwant Varma, Purushaindra Kumar Kaurav
$~74
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ W.P.(C) 15364/2023
CARE INDIA SOLUTIONS FOR SUSTAINABLE
DEVELOPMENT ..... Petitioner
Through: Mr. Arvind P Datar, Sr.
Advocate alongwith Mr. Sachit
Jolly, Mr. Rishabh Malhotra,
Ms. Soumya Singh, Ms. Disha
Jham, Mr. Devansh Jain, Mr.
Aditya Rathore and Mr.
Abhyudaya Shankar
Bajpai, Advocates
Versus
PRINCIPAL COMMISSIONER OF INCOME TAX
CENTRAL DELHI 2 & ANR. ..... Respondents
Through: Mr. Vipul Aggarwal, Sr.SC
alongwith Mr. Sanjeev Menon,
Jr. SC for Mr. Zoheb Hossain,
Sr. SC.
CORAM:
HON'BLE MR. JUSTICE YASHWANT VARMA
HON'BLE MR. JUSTICE PURUSHAINDRA KUMAR
KAURAV
ORDER
% 22.03.2024 CM APPL. 17849/2024 (for stay)
1. This application has been moved by the writ petitioner aggrieved by the issuance of the Show Cause Notice ["SCN"] dated 18 March 2024.
2. The SCN itself calls upon the petitioner to explain and show cause why prosecution be not launched in terms of Sections 276C, 277, 278B, 278E of the Income Tax Act, 1961 ["Act"] read alongwith Sections 420 and 120B of the Indian Penal Code, 1860 ["IPC"].
This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 27/03/2024 at 22:12:25
3. Mr. Agarwal and Mr. Menon, learned counsels appearing on behalf of the respondents have taken a preliminary objection to the maintainability of the application itself and contend that it clearly amounts to a misjoinder of separate and independent causes of action.
4. According to learned counsels, the writ petition is concerned primarily with the cancellation of registration and which is referable to Section 12A of the Act. According to learned counsels, the proposed initiation of prosecution proceeds on grounds which are wholly independent and thus there exists no justification in the prosecution being impugned in the present writ petition. It was further contended that the SCN itself is not based merely on the material which forms the subject matter of the impugned order dated 29 September 2023 referable to Section 12A of the Act and thus this Court should refrain from entertaining the instant application.
5. We however find ourselves unable to sustain those objections for the following reasons. It is pertinent to note that the writ petitioner challenges the order under Section 12A of the Act dated 29 September 2023. The aforesaid order rests primarily on an assessment which was completed and on the basis of the conclusions recorded in the course thereof forming the foundation for rejection of the assessee's claim under Sections 11 and 12 of the Act with retrospective effect. A reading of the order impugned in the writ petition would further establish that it also rests upon allegations pertaining to M/s Mohit Travels, transactions of the petitioner with Shri Chandra Kant Mishra, and assertions of siphoning of funds all of which are also noticed in the order impugned before us. It would, therefore, be principally incorrect for the respondents to contend that there is no commonality or connect between the SCN and the orders impugned This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 27/03/2024 at 22:12:25 before us.
6. We note that the writ petition has been duly entertained and interim order had been passed. The interim order has operated since January 2024. The writ petition itself has been adjourned on multiple occasions on the request of the respondents.
7. We thus find no justification in the issuance of the impugned SCN during the pendency of the instant writ petition. We also take into consideration the submission of Mr. Jolly, learned counsel who draws our attention to the invocation of Sections 420 and 120B of the IPC to submit that the aforesaid provisions are sought to be invoked in colourable exercise of power.
8. We are thus of the considered opinion that the writ petitioner is entitled to interim protection. We accordingly provide that while the writ petitioner shall proceed to file and furnish its reply to the impugned SCN, the respondent no.1 shall stand restrained from passing any final orders till the disposal of the instant writ petition.
9. The application shall stand disposed of.
W.P.(C) 15364/2023 Let the matter be called again on 27.05.2024, the date already fixed.
YASHWANT VARMA, J.
PURUSHAINDRA KUMAR KAURAV, J.
MARCH 22, 2024 p'ma This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 27/03/2024 at 22:12:26