1998 (7) TMI 22 - HC - Income Tax

Summary

Issues involved:
The petitioners sought to quash the order of the Commissioner of Income-tax in relation to assessment years 1964-65, 1971-72, 1973-74, 1975-76, and 1976-77, and also requested a writ of prohibition against further proceedings under the Income-tax Act and Wealth-tax Act.

Judgment Details:

Assessment Years 1954-55 to 1963-64, 1965-66 to 1970-71:
- The Income-tax Appellate Tribunal canceled penalty proceedings for these years.
- The Commissioner rightly accepted the petitioners' case for these years.

Assessment Years 1964-65, 1971-72, 1972-73, 1973-74, 1975-76, and 1976-77:
- The petitioners claimed orders were passed without adequate opportunity.
- Commissioner refused to interfere despite lack of evidence of proper notice service.
- Department failed to substantiate proper notice service.
- Commissioner's order was unclear and lacked necessary records.
- The order was quashed, and the matter remitted for fresh disposal.
- No penalty proceedings were initiated against the petitioners.

Final Decision:
- Writ Petition No. 4221 of 1989 allowed, order quashed, matter remitted for fresh disposal for the mentioned assessment years.
- Until fresh order by the Commissioner, no proceedings can be taken against the petitioners for arrears of income-tax or wealth-tax.
- Writ Petition No. 4220 of 1989 allowed accordingly.
- No costs awarded in both writ petitions.
- W. M. P. No. 6203 of 1989 is closed.