Court grants interim relief in petition to quash IT Act notice citing lack of jurisdiction The Court granted interim relief in a petition seeking to quash a show cause notice under Section 142(1) of the IT Act, citing lack of jurisdiction due to ...
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Court grants interim relief in petition to quash IT Act notice citing lack of jurisdiction
The Court granted interim relief in a petition seeking to quash a show cause notice under Section 142(1) of the IT Act, citing lack of jurisdiction due to unresolved matters before the Income Tax Settlement Commission and Interim Board of Settlement. Urgent notice was issued returnable on 25.10.2021, and interim relief was granted to stay the implementation of the notice. Direct service through speed post and e-mode was allowed for effective communication.
Issues: Petition for writ of mandamus to quash show cause notice under Section 142(1) of the IT Act; Jurisdiction of respondent authority post discontinuation of Income Tax Settlement Commission; Interim relief pending final disposal of petition.
Analysis: The petitioner sought various reliefs through the petition, including quashing the show cause notice dated 15.09.2021 issued under Section 142(1) of the IT Act. The petitioner contended that the respondent authority lacked jurisdiction to initiate proceedings for recovery due to the existence of unresolved matters before the Income Tax Settlement Commission and the newly formed Interim Board of Settlement.
The petitioner highlighted the discontinuation of the Income Tax Settlement Commission following an amendment under Section 245 B of the IT Act, leading to the establishment of the Interim Board of Settlement. The petitioner's grievance primarily revolved around the actions of respondent No.4 in initiating proceedings under Section 142(1) of the IT Act despite the ongoing unresolved matters before the settlement bodies.
The Court, considering the urgency of the matter, issued an urgent notice returnable on 25.10.2021. Additionally, interim relief in line with the petitioner's prayer 9(D) was granted to stay the implementation and operation of the impugned notice dated 15.09.2021. Moreover, the Court allowed direct service through speed post and e-mode in addition to the regular mode of service to ensure effective communication and adherence to legal procedures.
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