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    Natural justice in penalty proceedings and the scope of a specified previous year under section 271AAA.
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      Companies Law

      Validity of an investigation order under the Companies Act was...

      Disclosure of reasons for executive investigations is required; absence of disclosed material led to quashing of the investigation notice.

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      Companies LawMarch 20, 2026Case LawsHC
      Validity of an investigation order under the Companies Act was tested against the requirement that executive power to order investigations be supported by disclosed reasons and relevant material. The inspection report recorded only minor violations and made no recommendation for investigation; the Ministry relied on a later Regional Director proposal that was not disclosed. Applying the principle that administrative orders must state and be supported by material reasons when exercised in public interest, the court found the notice initiating investigation lacked substance and quashed the notice, allowing the writ petition.

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      ActsIncome Tax