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Issues:
1. Writ petition seeking prohibition and quashing of order passed by Income-tax Officer for penalty imposition under section 272A(1)(c) of the Income-tax Act, 1961. Analysis: The petitioner, Correspondent of a school, filed a writ petition challenging an order by the Income-tax Officer requiring her to show cause for potential penalty imposition under section 272A(1)(c) of the Income-tax Act, 1961. The impugned notice was based on a survey conducted at the school's premises, where the petitioner agreed to pay a sum towards income tax for previous years. The order alleged improper maintenance of accounts, willful suppression of receipts, and destruction of incriminating documents. The petitioner was warned of penalty and prosecution under sections 276C and 276CC for non-compliance. The counter-affidavit by the Income-tax Officer clarified that no tax was determined or levied against the petitioner or the school. The court noted that the proposed penalty and prosecution lacked legal basis as there was no assessment, demand, or recovery proceedings against the petitioner or the school. The court found no connection between the impugned notice and the facts presented in the counter-affidavit, leading to the conclusion that the actions proposed were impermissible in law. The respondent's argument that the survey operation was focused on the school's activities, not the petitioner's individual financial affairs, was crucial. Since no proceedings were pending against the school, the summons issued during the survey was deemed invalid. The court referenced legal precedents to support its decision, emphasizing that the summons issued post-survey lacked jurisdiction. The court highlighted the importance of timing in issuing summons under section 133A and clarified that the summons issued after the survey was not valid under the law. Consequently, the court allowed the writ petition, setting aside the impugned notice. The respondent was granted the liberty to take appropriate action against the school in accordance with the law.
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