2022 (7) TMI 1322 - HC - Income Tax

Look Out Circular (LOC) issued against petitioner - seeking permission to travel abroad - categories of cases in which the investigating agency can seek recourse of Lookout-Circular and under what circumstances - procedure required to be followed by the investigating agency before opening a Lookout-circular? HELD THAT - Keeping in view the aforesaid averments as well as the law laid down by this Court in Sumer Singh Salkan vs. Assistant Director Ors.. 2010 (8) TMI 1083 - DELHI HIGH COURT Petitioner states that he would approach the Trial Court for cancellation of the Lookout Circular as well as for permission to travel abroad. We, accordingly, grant liberty to the Petitioner-applicant to approach the Trial Court, which Court shall consider the application for cancellation of Lookout Circular as well as for permission to travel abroad in accordance with law. In the event such an application is filed before the Trial Court within a week, the same shall be disposed of as expeditiously as possible, preferably, within four weeks. This Court clarifies that it has not commented on the merits of the controversy. The rights and contentions of all the parties are left open.

Summary

Issues:
1. Quashing of Lookout Circular issued against the Petitioner by Respondent No.1.
2. Approach to the Trial Court for cancellation of the Lookout Circular and permission to travel abroad.

Analysis:
1. The Petitioner sought the quashing of the Lookout Circular issued against them by Respondent No.1. The Respondent, in its counter affidavit, mentioned that a prosecution complaint had been filed, and the Petitioner had been summoned by the court. The Respondent suggested that the Petitioner should approach the Trial Court for bail and travel conditions. Citing previous judgments, the Petitioner's counsel agreed to approach the Trial Court for cancellation of the Lookout Circular and permission to travel abroad. The High Court granted liberty to the Petitioner to approach the Trial Court for the said purposes.

2. The High Court directed the Petitioner to file an application before the Trial Court within a week. The Trial Court was instructed to consider the application for cancellation of the Lookout Circular and permission to travel abroad promptly, preferably within four weeks. The High Court explicitly stated that it had not made any comments on the merits of the case, leaving the rights and contentions of all parties open. With the liberty granted to the Petitioner and the clarification provided, the writ petition and application were disposed of by the High Court.