2024 (10) TMI 97 - HC - Income Tax

Supervisory jurisdiction of this Court invoked cancelling Look Out Circular (LOC) issued at the behest of Income Tax Department against the petitioner herein - Petitioner claimed that such LOC has not been issued in legitimate manner and prayed that such LOC be cancelled. Simultaneously, he also sought liberty of the learned Trial Court to travel abroad - also application seeking release of his FDR but such request has been turned down on the ground that FDR was not a condition with respect to travel - HELD THAT - Department of Income Tax is duly represented in the present proceedings and in response to the query put by this Court, it has been, very fairly, admitted that as on date there is no further Look Out Circular against the petitioner. This Court has already extracted the relevant portion of the order whereby the petitioner had been permitted to travel abroad and it is quite evident that the above said FDR was in lieu of his such travel only as he was directed to submit the same before leaving the country. Admittedly, he was also asked to join the investigation as and when directed by the AO and respondent has stated that such proceedings have already culminated into an assessment order. In view of the fact that earlier Look Out Circular had been rescinded and there is no fresh Look Out Circular, there was no reason to have not released the aforesaid FDR of Rs. 25 lacs. The petition is accordingly allowed and learned Trial Court is directed to release the aforesaid FDR of Rs. 25 lacs to the petitioner.

Summary

The petitioner invoked Article 227 for canceling a Look Out Circular (LOC) by the Income Tax Department. The LOC was rescinded, allowing the petitioner to travel abroad with conditions. The petitioner's request for release of FDR was denied, but the High Court directed the release of the FDR as there was no fresh LOC against the petitioner. The petition was allowed, and the FDR of Rs. 25 lacs was ordered to be released to the petitioner.