https://www.taxtmi.com/caselaws?id=457242 A civil court may, in an appropriate case, use inherent powers to direct an investigation by the tax authority where the record discloses a prima facie sham or accommodation transaction affecting public revenue and public policy. The Court stated that public policy is not rigid and may be applied to protect public interest and the State's welfare. It further held that, although inherent powers are exercised sparingly, they may be invoked ex debito justitiae when special facts emerge from the record and the direction serves the ends of justice. On that basis, the direction for tax investigation was held to be within the Court's competence and not illegal. en-us Fri, 15 Jul 2022 00:00:00 +0530 Thu, 12 Sep 2024 20:11:43 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=457242 A civil court may, in an appropriate case, use inherent powers to direct an investigation by the tax authority where the record discloses a prima facie sham or accommodation transaction affecting public revenue and public policy. The Court stated that public policy is not rigid and may be applied to protect public interest and the State's welfare. It further held that, although inherent powers are exercised sparingly, they may be invoked ex debito justitiae when special facts emerge from the record and the direction serves the ends of justice. On that basis, the direction for tax investigation was held to be within the Court's competence and not illegal. Case-Laws Indian Laws Fri, 15 Jul 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=457242