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2007 (6) TMI 523 - HC - Income TaxValidity of order passed by CBDT - Seeks declaration that payments towards voyage charter and time charter are not subject to deduction of tax at source u/s 194-I of the Income Tax Act, 1961 ("Act" ) - Central Board of Direct Taxes (CBDT) had neither put up their appearance nor filed any return or affidavit in reply disclosing their stand and chose to keep the representation made by petitioner No.1 pending without any decision thereon - HELD THAT:- It is difficult to understand whose contentions are addressed; whether that of the Income Tax Department or petitioner No.1- Association. No reasons are to be found in support of the approval accorded. It is further mentioned that in case of clarification the petitioners may contact the undersigned or CIT (TDS). Again one has to guess what one means by "undersigned". Whether Chairperson of CBDT or the Deputy Secretary (Budget), who has signed the order for Chairperson or CIT (TDS), who was one of the parties who had appeared before the CBDT to counter the contentions raised by petitioner No.1- Association. The representation of petitioner No.1- Association has been decided in a most casual manner without assigning any reasons whatsoever, as such alleged decision can hardly be said to be a legal and valid decision. The mode and manner in which the compliance of the order of this Court is made, it has become necessary for us to bring it to the notice of the CBDT through this order one of the judgments of the Apex Court in the case of East India Commercial Co.Ltd. v. Collector of Customs, Calcutta[1962 (5) TMI 23 - SUPREME COURT], which may serve as an eye-opener for them. In the aforesaid backdrop, since the decision rendered by CBDT is not in accordance with the directions issued by this Court, and that, it is also in breach of the Law laid down by the Apex Court in Gullapalli Nageswara Rao and others v. Andhra Pradesh State Road Transport Corporation and another [1958 (11) TMI 28 - SUPREME COURT]; Ram Saran Das Kapur v. Commissioner of Income-tax, Patiala[1969 (3) TMI 24 - PUNJAB AND HARYANA HIGH COURT] and Krishna Swami v. Union of India and others [1992 (8) TMI 277 - SUPREME COURT]. we are left with no other alternative but to pass the following order: (A) Issue notice returnable after three weeks to Smt.Indira Bhargav, Mumbai to show cause as to why suitable action should not be initiated against her, under the provisions of the Contempt of Court Act, for not following directions issued by this Court. (B) Issue notice returnable after three weeks to the C.B.D.T. to show cause as to why their order not to be set aside pending disposal of the substantive petition as it is not in conformity with the order of this Court. Petitioners undertake to serve notice. Hamdast allowed. Private service by R.P.A.D. with telegraphic intimation is also permitted.
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