2019 (4) TMI 573 - HC - Income Tax

Liberty to withdraw the Writ Petition and Special Leave Petition and instead avail of his remedies under the provisions of the Income Tax Act - HELD THAT - Liberty as prayed is granted. The Writ Petitions as also the Special Leave Petition are accordingly closed on withdrawal with liberty as aforesaid. This Court is of the considered opinion that once the apex Court has not interfered with the Show Cause Notice dated 8/11/2011 and 4/7/2014 and has permitted the petitioner to avail the remedies under the provisions of the Income Tax Act, 1961, the question of interference with the Show Cause Notices, by this Court does not arise.

Summary

Issues:
1. Challenge to notices issued by the Income Tax department.
2. Interpretation of orders passed by the Gauhati High Court and the Supreme Court.
3. Request for observations by the High Court.

Analysis:

1. The petitioner, a company registered under the Companies Act, challenged the notices dated 8/11/2011 and 4/7/2014 issued by the Assistant Commissioner of Income Tax. The dispute arose when a notice was issued under the Income Tax Act, 1961, regarding a due sum from another corporation. The petitioner had filed Writ Petitions before the Gauhati High Court, which were withdrawn with liberty to establish rights in appropriate proceedings. Subsequently, a Review Petition was also withdrawn. The Supreme Court dismissed the Special Leave Petition, advising the petitioner to avail remedies under the Income Tax Act.

2. The High Court noted that the Supreme Court did not interfere with the Show Cause Notices and allowed the petitioner to seek remedies under the Income Tax Act. The Court observed that since the apex Court had not interfered with the notices, there was no basis for the High Court to intervene. Consequently, the petition for quashment of the notices was dismissed.

3. The petitioner sought observations from the High Court. However, the Court, considering the Supreme Court's order and the petitioner's opportunity to seek remedies under the Income Tax Act, found no grounds for interference with the Show Cause Notices. Therefore, the Court dismissed the petition, affirming the petitioner's right to pursue remedies under the Income Tax Act as advised by the Supreme Court.