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Issues Involved:
1. Maintainability of the writ petition under Article 226 of the Constitution of India. 2. Scope of "any money or other valuable article" u/s 132(1)(c) of the Income-tax Act. 3. Impact of the conduct of Sri Shyam Bhatia on the petitioner's entitlement to discretionary relief. 4. Relevance of the corporate personality of the petitioner-company in the proceedings. 5. Requirement of notice to the company or its directors before proceedings. 6. Validity of assailing proceedings u/s 132(3), 132(1), and 132(5) of the Income-tax Act after the authorised signatory's request for adjustment. Summary: Issue 1: Maintainability of the Writ Petition The court held that the petitioner is not entitled to maintain this action under Article 226 of the Constitution of India as parallel proceedings to those initiated by Sri Shyam Bhatia under section 132(11) of the Income-tax Act. The court emphasized that the principal character, Sri Shyam Bhatia, had already filed an appeal under section 132(11), and the factual controversies could be better addressed in those proceedings. Issue 2: Scope of "Any Money or Other Valuable Article" The amounts in the bank accounts of the petitioner (current account and fixed deposit receipts account) were deemed "valuable things" and, therefore, "assets" referred to in section 132 or documents covered by sections 132(1A) and 132(8) of the Act. The court agreed with the decisions of the Kerala High Court and Madras High Court that a debt is a "valuable thing." Issue 3: Impact of Sri Shyam Bhatia's Conduct The conduct of the company, acting through its authorised signatory, disentitled it from seeking or obtaining any discretionary relief in these proceedings. The court noted that Sri Shyam Bhatia had more authority to represent the company in financial transactions than any of its directors and had actively participated in the proceedings. Issue 4: Corporate Personality of the Petitioner-Company The corporate personality of the petitioner-company was found to have no significance since it was duly represented in the proceedings under sections 132(1), 132(3), and 132(5) by its "authorised signatory." The court highlighted that the company had sufficient notice through its authorised signatory. Issue 5: Requirement of Notice The petitioner had sufficient notice through its authorised signatory, and therefore, there was no infirmity in the proceedings for non-issue of notice. The court dismissed the argument that the proceedings were vitiated due to lack of notice to the company. Issue 6: Validity of Assailing Proceedings In view of the submission of counsel for the Revenue that any claim of the petitioner will be considered in the appeal filed by Sri Shyam Bhatia under section 132(11) of the Income-tax Act, the court found it unnecessary to pronounce on this aspect. Conclusion: The court dismissed the writ petition without prejudice to the petitioner's rights to urge all contentions before the appellate authority under section 132(11) of the Income-tax Act. The court also declined leave to file an appeal before the Supreme Court, finding no question of law of public importance requiring the Supreme Court's decision.
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