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of <h1>Court rules for petitioner on tax clearance issue, criticizes reliance on bureau proceedings.</h1> The court ruled in favor of the petitioner on multiple issues. It held that the refusal to issue a clearance certificate under section 230A of the ... Tax Clearence Certificate Issues:1. Refusal to issue a clearance certificate under section 230A of the Income-tax Act.2. Legitimacy of withholding certificate based on Anti-Corruption Bureau's proceedings.3. Relevance of Anti-Corruption Bureau's request to deny permission for property sale.4. Interpretation of Supreme Court observations in Bihari Lal Jaiswal v. CIT regarding partnership agreements and registration under income-tax law.5. Dismissal of the writ petition against the third respondent regarding registration of the document.Issue 1: Refusal to issue a clearance certificate under section 230A of the Income-tax Act.The petitioner, an assessee under the Income-tax Act, challenged the order refusing to issue a certificate under section 230A. The court noted that the Assessing Officer must ensure the applicant has paid or made provisions for all existing liabilities. Since there were no pending demands or proceedings against the petitioner, the refusal lacked basis as it did not refer to any unsatisfied liability. The court emphasized that future liabilities were not under section 230A's purview.Issue 2: Legitimacy of withholding certificate based on Anti-Corruption Bureau's proceedings.The court criticized the withholding of the certificate due to Anti-Corruption Bureau proceedings against the petitioner's husband. It deemed the mere connection between the proceedings and the property sale insufficient to justify refusal under section 230A. The court emphasized that the Assessing Officer must independently assess based on the Act's criteria, which the vague allegations failed to meet.Issue 3: Relevance of Anti-Corruption Bureau's request to deny permission for property sale.The court dismissed the relevance of the Anti-Corruption Bureau's request to deny permission for property sale. It stated that the request did not relieve the first respondent of the obligation to assess independently based on section 230A's criteria. The court highlighted that statutory obligations should not be overridden by external requests.Issue 4: Interpretation of Supreme Court observations in Bihari Lal Jaiswal v. CIT.The court discussed the Supreme Court's observations in Bihari Lal Jaiswal v. CIT regarding partnership agreements and registration under income-tax law. It clarified that the lawfulness of partnership agreements directly impacts firm registration. The court emphasized that the grant of registration should not benefit agreements violating other laws, emphasizing that one law should not undermine another.Issue 5: Dismissal of the writ petition against the third respondent regarding registration of the document.The court declined to address the third respondent's obligation to register the document, stating it was a separate cause of action. The petitioner was advised to pursue relief against the third respondent through a distinct proceeding. The writ petition was partly allowed with specific observations and no costs were awarded.This detailed analysis covers the issues raised in the judgment, providing a comprehensive understanding of the court's reasoning and decisions on each matter.
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