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TMI Blog2018 (6) TMI 1517X X X X Extracts X X X X X X X X Extracts X X X X ..... n which he returned to India and was arrested from the Cochin International Airport by the investigating agency. The appellant is on bail in the criminal case booked by the Central Investigation Bureau. The bail conditions provided for surrender of the Passport and restriction in leaving India. Later, the appellant was before the Sessions Court for waiving the conditions, which was allowed. Consequently the Passport was released by the Sessions Court and the appellant had gone abroad and returned within the time stipulated. Again the appellant on alleged renal complaint, which has to be treated in Abu Dhabi (at which place he has a valid insurance), approached the High Court with an application for relaxation of the conditions. This Court b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Counsel would point out that the demand under Section 179, as seen from Exhibit P13, is with respect to a Company in which the appellant was a Director. The appellant had resigned from the Directorship in the year 2009 itself and the same is evidenced by the documents before the Registrar of Companies. 4. The learned Standing Counsel for the Department points out that the criminal case also originated from a raid conducted by the Income Tax Department in the premises of the Company. About Rs. 4.86 crores was recovered in liquid cash from the premises at the time of raid. Notices were issued to the Directors of the Company and the proceedings were finalized for assessment, on which tax and penalty is due to the Revenue. There has been no ch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see. 5. The learned Senior Counsel for the appellant relies on the decision in I.T.O. v. Mrs.A.Sattler [(1973) 92 ITR 576] to contend that there could be no restrictive orders passed, under Section 230 when there is no subsisting demand for tax from the assessee. It is also contended that the instructions issued by the Central Board of Director Taxes (CBDT), for Tax Clearance Certificate under Section 230, speaks of such certificates being insisted upon only in the context of there being direct tax arrears exceeding Rs. 10 lakhs outstanding against an assessee which has not been stayed by any other authority. It is also pointed out that 'tax due' for the purpose of Section 179 includes penalty, since the Explanation under Section 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as the deceased husband of the respondent before the Supreme Court. After the death of the assessee, his wife wanted to go abroad to join her daughter, for which she applied for income-tax clearance certificate. The certificate was refused for reason of the arrears due from her late husband. The respondent moved the High Court which found that there was no valid assessment on the assessee. It was hence the Supreme Court affirmed the order of the High Court interfering with the order refusing tax clearance certificate. 8. As for the contention regarding the circular of the CBDT, it is to be noticed that one of the circumstances under which section 230 (1A) was found to be possible of invocation, in the circular itself, was: "where the per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the proceedings under Section 179 and further time of four weeks with respect to an order under Section 230. In such circumstances, we would issue specific orders fixing the time within which a notice has to be served, appearance has to be made and orders passed. We are also of the opinion that Exhibits P13 and P8 orders have to be quashed; but, however, with a restriction that the order not to travel outside India as is seen from Exhibit P8 shall continue till fresh orders are passed. It is so ordered. The appellant is directed to appear before the 2nd respondent on 29.06.2018, on which date he shall be issued with a fresh notice under Section 179 and under Section 230. The appellant shall file written objections, if required, and shal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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