2019 (11) TMI 276 - HC - Income Tax

Offences committed by the petitioner u/s 276C(1) and u/s 277 - Issuance of show cause notice - it is contended that, when a statutory appeal is filed and pending before the CIT(A) as against the order of assessment, the impugned action is totally unwarranted. - Non filing of stay application - HELD THAT - it is for the first respondent to consider the said objection dated 14.02.2019 and pass appropriate orders on merits and in accordance with law. It is also open to the petitioner to file appropriate stay petition before the Appellate Authority, more particularly, when the appeal was filed as early as on 10.06.2015 and the same is kept pending all along. The present impugned show cause notice was issued to the petitioner on 19.11.2018. Admittedly, the petitioner has filed their objection, raising all the contentions. Therefore, it is for the first respondent to consider the said objection dated 14.02.2019 and pass appropriate orders on merits and in accordance with law. It is also open to the petitioner to file appropriate stay petition before the Appellate Authority, more particularly, when the appeal was filed as early as on 10.06.2015 and the same is kept pending all along. When all these courses of action are available to the petitioner, do not think that the present writ petition can be still entertained, as it is for the first respondent to pass orders on the objection raised by the petitioner dated 14.02.2019.

Summary

Issues:
Challenge to show cause notice under Section 276C(2) of the Income Tax Act, 1961 for sanction under Section 279(1) - Maintainability of action before appellate authority - Filing of stay petition - Disposal of writ petition.

Analysis:
The petitioner challenged a show cause notice issued under Section 276C(2) of the Income Tax Act, 1961, seeking sanction under Section 279(1) for directing the Assessing Officer to file complaints for offenses under Sections 276C(1) and 277. The petitioner contended that the action was unwarranted as an appeal was pending before the Commissioner of Income Tax (Appeals) against the assessment order. The respondents argued that the petitioner did not file a stay petition despite the assessment order, justifying the issuance of the show cause notice.

The assessment order for the relevant year was passed in 2015, with an appeal pending since then. The petitioner had not filed a stay petition before the Appellate Authority or the Assessing Officer. The show cause notice was issued in 2018, and the petitioner responded with objections. The court noted that the petitioner had the option to file a stay petition before the Appellate Authority, especially since the appeal had been pending for a considerable time. The court emphasized that the first respondent should consider the objections raised by the petitioner and pass appropriate orders in accordance with the law.

Considering the available courses of action for the petitioner, the court concluded that the writ petition could not be entertained further. The court disposed of the writ petition, directing the first respondent to decide on the objections raised by the petitioner within four weeks. No costs were awarded, and the connected miscellaneous petition was closed.