TaxTMI 
TaxTMI 
2017 (11) TMI 1608
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....to as the Act). The impugned show cause notice states that a search under Section 132 of the Act was conducted in the petitioner's residence on 24.4.2016 and during the course of search operations, unaccounted cash for a sum of Rs. 4,93,84,300/- was seized. It further states that during the course of search, a sworn statement was recorded from the petitioner wherein the petitioner admitted to have earned the unaccounted income of Rs. 4,93,84,300/- through various activities like mediating for contracts, working as a commission agent for various transactions with the Government for the financial year 2016-17. It also states that in the return of income filed for the assessment year 2017-18, the petitioner declared -NIL- income. 3. Wit....
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....otice also states that the proposition that prosecution can be launched without waiting for assessment to be completed is upheld by the decision of the Hon'ble Supreme Court in the case of Jayappan Vs. S.K. Perumal, First ITO [reported in (1984) 149 ITR 696]. 6. The learned counsel for the petitioner would submit that the impugned show cause notice is without jurisdiction in view of the fact that Sub-Section (1) of Section 279 enumerates officers, who are competent to issue show cause notices. But, the impugned show cause notice has been issued by the Principal Director of Income Tax (Investigation), who is not one of the officers enumerated in the said provision. 7. Elaborating further on the said submission, he has submitted tha....
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....ourt considered as to whether the Deputy Director of Income Tax has jurisdiction to initiate prosecution. The Hon'ble Supreme Court ultimately held that it is only the Deputy Commissioner (Appeals), as is apparent from Section 246(1), who has been conferred with the appellate jurisdiction to entertain the appeals, albeit from specified orders passed by the Assessing Officer and the Deputy Director of Income Tax, in particular, has not been designated to be the Appellate Authority or Forum from such orders or any other order of the Assessing Authority and therefore, it was held that the proceedings are without jurisdiction. 10. Reliance was also placed on the decision of the Hon'ble Supreme Court in the case of CIT Vs. Bhupen Cham....
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.... provisions do not provide for an opportunity of personal hearing, with a view to provide an opportunity, the show cause notice was issued and the reply to be given by the petitioner will be considered and thereafter, the proceedings will be initiated in accordance with law and that therefore, the impugned notice is valid. 14. By referring to the decision of this Court in the case of N.Athimoolam Vs. ITO [reported in (2010) 327 ITR 603], it is submitted by the learned Senior Standing Counsel that the findings of the Tribunal can have no binding effect on the proceedings of Criminal Court and that the view taken by this Court in the case of ACIT Vs. N.K.Mohamed Ali [reported in (2010) 325 ITR 661] was held to be the correct position of la....