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2018 (7) TMI 2075 - HC - Income TaxRestraining the petition from transferring funds overseas - Offences under Section 277 of Income Tax Act,1961, Sections 181, 186, 191 read with Section 193 of Indian penal Code - Income Tax Settlement Commission had rejected the application of petitioner - Subsequently, the learned Magistrate directed issuance of Letter of Request requesting Foreign Country Government of Bailiwick of Guernsey to make investigation in this particular account of accused and to submit that report to Court as early as possible. - It is submitted by the counsel for the petitioner that the impugned orders were passed without affording any opportunity to the petitioner. Held that:- on perusal of the Roznama, it is crystal clear that the complaint was listed before the Court on 12th February, 2018 and since the Court was on leave, the board was discharged and the proceedings were adjourned to 2nd July, 2018. In the circumstances, there was no occasion for the petitioner to appear before the trial Court on 9th April, 2018, 12th April, 2018 or 13th April, 2018. The impugned order passed by the trial Court proceeds on the basis that the accused and his advocate are found absent when repeatedly called out. It appears that the Court was under belief that the matter was due for hearing on that day or that they were put to notice and in spite of that neither the advocate nor the accused were present in the Court when the applications was heard by the Court. The application preferred by the respondent No.1 gives details about said entities. It is prayed in the application that the Letter of Request and Letter of Rogatory be issued to the Foreign Court to place restraint order restraining transfer of funds from the entities viz Banyan Tree Trust and Kinetic Holding Limited. The applicant further prayed that the Letter of Request or Letter of Rogatory be issued to the relevant foreign court to place a restraint order on Confiance Limited restraining it from executing fund asset transfer away from entities stated therein. It was further prayed that Court may issue Letter of Request / Letter of Rogatory to relevant foreign Court to issue attachment order in respect of entitles though not based in Guernsey but managed from that Country by Confiance Limited. In the circumstances stated hereinabove, it was expected that the trial Court ought to have given an opportunity to the Petitioner. However, one cannot ignore the purport of preferring the application and apprehension expressed therein. In the circumstances, the balance will have to be struck between the principle of natural justice and need for investigation into aspects as claimed in the application preferred by the respondents. - The matter is remanded back to the trial Court for hearing the application preferred by the respondent afresh.
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