2019 (7) TMI 1869 - HC - Income Tax

Order of Single Judge directing the appellant to file necessary objection to the show cause notice issued by the respondent - HELD THAT - We permit the appellant to make suitable reply to the impugned show cause notice dated 21.03.2018 within a period of two weeks from the date of receipt of a copy of this order. On such receipt the respondent shall pass appropriate orders within a period of two weeks thereafter.

Summary

Issues:
Challenging an order directing to file objection to a show cause notice, clarification of observations made by a Single Judge, responding to a show cause notice, passing appropriate orders on merits.

Challenging Order to File Objection:
The writ appeal was filed against the order of a Single Judge directing the appellant to file necessary objection to a show cause notice issued by the respondent. The Senior Counsel for the appellant submitted that while there was no difficulty in replying to the notice, he raised concerns regarding the observation made by the Single Judge in the order. The Court considered this submission and permitted the appellant to make a suitable reply to the show cause notice within two weeks. It was clarified that the respondent should pass appropriate orders without being influenced by any observations made by the Single Judge in previous orders.

Clarification of Observations:
The appellant sought clarification on the observations made by the Single Judge in the order under challenge. The Court addressed this concern by allowing the appellant to respond to the show cause notice and directing the respondent to pass appropriate orders on merits within two weeks of receiving the appellant's reply. It was emphasized that the respondent should base their decision solely on the merits of the case and in accordance with the law, disregarding any previous observations made by the Single Judge in other matters.

Responding to Show Cause Notice:
The counsel for the Revenue argued that the appellant should not have challenged the order as it was only a show cause notice, and the final decision was pending. The Revenue assured that once the reply was received from the appellant, appropriate orders would be passed on merits within two weeks. The Court acknowledged this submission and allowed the appellant the opportunity to respond to the notice within the specified time frame, ensuring that the respondent would make a decision based on the merits of the case.

Passing Appropriate Orders on Merits:
The Court directed the appellant to reply to the show cause notice within two weeks and instructed the respondent to pass appropriate orders within a similar timeframe. It was made clear that the respondent should make decisions independently of any previous observations or findings by the Single Judge in other matters. The Court disposed of the writ appeal with no costs and closed the connected application, concluding the proceedings.

This detailed analysis covers the issues involved in the legal judgment, addressing the challenges to the order, the need for clarification, the process of responding to the show cause notice, and the directive to pass appropriate orders on merits.