2019 (7) TMI 1958 - HC - Income Tax

Assessment of trust - SCN calling upon the petitioner to show cause as to why the registration u/s 12(A)(a) of the Income Tax Act, 1961, should not be canceled - HELD THAT - As in the instant case, though the petitioner has sought for information way back in the year 2008, such a representation was not considered till the year 2010, which had prompted the petitioner to file the present writ petition. As such, it would be justifiable for this Court to interfere into the Show Cause Notice and grant further time for the respondent to act on such a request made by the petitioner pursuant to the Show Cause notice. Respondent submitted that if the details and information sought for by the petitioner touches upon confidential matters of investigation or the like, it may not be permissible under law for them to furnish such documents. Nevertheless, such information and documents which are permissible in law will be considered, if the petitioner approaches the respondent. The petitioner is granted liberty to file an additional reply to the Show Cause Notice dated 21.07.2008, seeking for details and information required by them and on receipt of such an information, the respondent shall consider the same on its own merits and take necessary action.

Summary

Issues:
Challenge to Show Cause Notice under Section 12(A)(a) of the Income Tax Act, 1961; Delay in responding to petitioner's representation seeking information; Permissibility of furnishing confidential documents; Granting liberty to file additional reply to Show Cause Notice.

Analysis:
The judgment involves a challenge to a Show Cause Notice issued under Section 12(A)(a) of the Income Tax Act, 1961. The petitioner sought information in response to the notice, which was not provided, leading to the filing of the writ petition. Typically, challenging such notices before final orders is not maintainable, but in this case, the delay in responding to the petitioner's request for information justified the Court's intervention. The Court decided to grant further time for the respondent to act on the petitioner's request, considering the circumstances.

The respondent's counsel argued that providing certain information might not be permissible if it pertains to confidential matters of investigation. However, the Court emphasized that information permissible by law should be considered and provided to the petitioner upon request. The Court granted the petitioner the liberty to submit an additional reply to the Show Cause Notice, specifying the details and information required. The respondent was directed to consider the additional reply within 30 days of receipt and take necessary action based on its merits.

In conclusion, the writ petition was disposed of without costs, and a connected miscellaneous petition was closed. The judgment highlights the importance of responding to requests for information in a timely manner, especially in cases involving Show Cause Notices under the Income Tax Act. It also underscores the need for transparency and adherence to legal provisions when dealing with confidential information during such proceedings.