Wp/38268/2016 Of M.radhakrishnan v. Income Tax Officer

IN THE HIGH COURT OF JUDICATURE AT MADRAS Dated : 03.11.2016 Coram The Hon'ble Mr.Justice T.S.Sivagnanam Writ Petition No.38268 of 2016 and W.M.P.No.32813 of 2016Mr. M.Radhakrishnan...PetitionerVs1. The Income Tax Officer,Ward 2 (3), O/o.The Joint Commissioner of Income Tax,Range 2, No.15, Gandhiji Road,Erode, Tamil Nadu 638 001.2.The Assistant Commissioner of Income Tax,Circle II, Erode.3.The Principal Commissioner of Income Tax (II)67-A, Race Course Road,Coimbatore. ...RespondentsWrit Petition, filed under Article 226 of the Constitutionof India, for issuance of Writ of Certiorarified Mandamus tocall for records relating to the show cause notice issued by thefirst respondent, dated 25.10.2016, in PAN : /W-2(3)/ERD/Prosecution/2016-17, and to quash the same, andconsequently, to forbear the respondent from initiating anyproceedings for prosecution against the petitioner in respect ofthe Assessment Year 2009-10. For Petitioner : Mr.Niranjan Rajagopalan For Respondents : Mr.T.Pramod Kumar Chopda Senior Panel Counsel O R D E R Heard Mr.Niranjan Rajagopalan, learned counselappearing on behalf of the petitioner, and Mr.T.Pramod KumarChopda, learned Senior Panel Counsel for Central Government,accepting notice on behalf of respondents. With the consent oneither side, the Writ Petition itself is taken up for finaldisposal. 2.The petitioner has filed this Writ Petition,challenging the Show Cause Notice issued by the firstrespondent, dated 25.10.2016, calling upon the petitioner toappear before him on 02.11.2016, and show cause as to why thepetitioner's case should not be referred to the PrincipalCommissionerofIncomeTax,forinitiationofprosecution/proceedings under Section 276 C (1) of the IncomeTax Act, 1961 ( hereinafter, referred to as 'the Act') on thealleged ground that the petitioner has willfully attempted toevade tax and interest chargeable, and penalty imposable underthe Act. 3.As rightly pointed out by the learned Senior PanelCounsel, the impugned Order is only a Show Cause Notice, towhich, the petitioner can very well appear before the firstrespondent and show cause as to why the proposals made in theShow Cause Notice should not be implemented/confirmed. 4.The learned counsel appearing on behalf of thepetitioner would submit that the petitioner has got certainlegal submissions to make, as to the jurisdiction of therespondent in proposing to initiate prosecution in the facts ofthe case. 5. The learned counsel for the petitioner would furthersubmit that, as against the Assessment Order, the petitioner hadpreferred Appeal before the Income Tax Appellate Tribunal(ITAT), and the same was allowed by the ITAT, however, on aCross-Appeal filed by the Revenue, the order was recalled by theITAT, and the Appeal of the Revenue was dismissed and againstboth orders, the petitioner has filed two Tax Case Appealsbefore the Hon'ble Division Bench of this Court, out of which,one Appeal has been numbered as T.C.A.No.784 of 2016, in which,an application for stay has been filed and the other Appeal isin the process of numbering, as the Registry has raised certainobjections as to its maintainability. 6.However, in the considered view of this Court, theimpugned proceedings, being only a Show Cause Notice, it cannotbe interdicted at this stage, and whatever points, thepetitioner wants to raise, can very well raised before the firstrespondent, by responding to the Show Cause Notice. Therefore, https://hcservices.ecourts.gov.in/hcservices/ the prayer sought for in this Writ Petition to quash theimpugned Show Cause Notice is rejected. 6.However, in the considered view of this Court, theimpugned proceedings, being only a Show Cause Notice, it cannotbe interdicted at this stage, and whatever points, thepetitioner wants to raise, can very well raised before the firstrespondent, by responding to the Show Cause Notice. Therefore, https://hcservices.ecourts.gov.in/hcservices/ the prayer sought for in this Writ Petition to quash theimpugned Show Cause Notice is rejected. 7.In the result, the Writ Petition is dismissed. Thepetitioner is directed to appear before the first respondent on10th November, 2016, and submit their reply to the Show CauseNotice. As an Interim Protection, till 10.11.2016, the firstrespondent shall not take any coercive action against thepetitioner. No costs. Consequently, connected Writ MiscellaneousPetition is closed. Sd/- Asst.Registrar (CS III ) /true copy/Sub Asst. RegistrarsdTo1. The Income Tax Officer,Ward 2 (3), O/o.The Joint Commissioner of Income Tax,Range 2, No.15, Gandhiji Road,Erode, Tamil Nadu 638 001.2.The Assistant Commissioner of Income Tax,Circle II, Erode.3.The Principal Commissioner of Income Tax (II)67-A, Race Course Road,Coimbatore.1 cc to Mr.T.Pramodkumar Chopda, Advocate, sr. 623191 cc to Mr.G.R. Associates, Sr. 62450 ( 11/11/2016) Writ Petition No.38268 of 2016 CTR (CO)kk 7/11