TMI Blog2014 (7) TMI 915X X X X Extracts X X X X X X X X Extracts X X X X ..... Notice - Decided in favour of Assessee. - Special Civil Application No. 9712 of 2002 - - - Dated:- 9-7-2014 - M. R. Shah And K. J. Thaker,JJ. For the Petitioner : Mr. Mihir. H. Joshi For the Respondent : Mr. K. M. Parikh JUDGMENT (Per : Honourable Mr. Justice M. R. Shah) 1. By way of this petition under Article 226 of the Constitution of India, the petitioner has challenged the impugned Show Cause Notices dated 28/3/2002 (Annexure-F) and dated 20/9/2002 (Annexure-H), by which the petitioner assessee is called upon to show cause as to why penalty under section 271(D) / 271(E) of the Income Tax Act, should not be imposed in case of society for the quantum of amount accepted or repaid in contravention of Sections 26 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the aforesaid facts is at Annexure-A hereto. 4. In the event a member does not require immediate payment (upto 75% of the estimated market value referred to above), such amount is transferred from his current account to his savings account which carries interest at the rate of 6% per annum and this can be withdrawn at member s convenience. As a matter of procedure, a receipt is issued to such member evidencing transfer of the amount from the current account to the savings account though in fact actual cash is neither paid nor received and the amount is transferred by entries and vouchers alone. A copy of one such set of documents in respect of a member Piyushbhai Naranbhai is collectively annexed herewith and marked at Annexure-B. 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ions in question. It is submitted that therefore unless and until a detailed inquiry is held by appropriate authority, it will not be appropriate at this stage to make observations one way or the other. It is submitted that the appropriate authority shall consider the defence and the contentions which may be raised by the petitioner before him and thereafter is bound to pass appropriate order in accordance with law and on merits. Therefore, it is requested not to enter into the merits of the case and the transactions and it is requested to relegate the petitioner to appear before the appropriate authority and file detailed reply. 4. Heard the learned advocates appearing on behalf of the respective parties at length. 4.1 At the outset, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nything on merits in favour of either of the parties, the petitioner is relegated to file detailed reply before the appropriate authority who has issued the Show Cause Notices and submit its case before the authority who has issued the Show Cause Notices. The said reply shall be filed within a period of three weeks from today. As and when the petitioner appears before the appropriate authority and reply is filed, the same shall be considered in accordance with law and on merits. It goes without saying that the appropriate authority shall consider the case in accordance with law and on merits and pass appropriate speaking order after giving fullest opportunity to the petitioner. With this present Special Civil Application is disposed of. Rul ..... X X X X Extracts X X X X X X X X Extracts X X X X
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