2023 (4) TMI 1115

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.... imposing penalty of Rs. 53,36,430/- under section 271(1)(c) of the Act. 2 Brief facts leading to the present petition are as follows: 2.1 A survey proceeding under section 133A of the Act was carried out in the business premises of the petitioner company on 06.12.2010. It was urged during the course of survey that the petitioner company had made investment of Rs.1.57 crores in the property of Gurgaon through Mrs. Sharmila Mahurkar, who is one of the Directors of the petitioner company vide Memorandum of Understanding executed between them with an intention to become major partner of the firm. The case was selected for scrutiny. The petitioner company is averred to have been engaged in the guarding business. As per the prevailing practice....

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....before this Court with the following prayers: "5. The Petitioner accordingly prays that this Hon'ble Court may kindly be pleased to issue: a. A Writ of Certiorari or writ, order, or direction in the nature of Certiorari quashing/set aside the Penalty Order passed u/s. 271(1)(c) of the Act for A.Y.2010-11 levying huge penalty of Rs.53,36,430/- without providing reasonable opportunity of being heard (Annexure-A) b. Pending hearing and final decision of the writ petition, to stay the penalty order and/or demand of Rs.53,36,430/-. c. Pass any other order(s) as this Hon'ble Court may deem fit and more appropriate in order to grant interim relief to the Petitioner; d. Any other and further relief deemed just and proper be granted in....

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....g Counsel for the respondent. 6 Without entering into the merits of the matter, we notice that there has been a serious flaw in affording the opportunity of hearing to the parties, which has resulted into imposition of huge amount of penalty on 28.11.2022. 7 Notice under section 274 read with section 271(1)(c) of the Act had been issued and the petitioner was asked to appear in person or through a duly authorised representative at 11:00 a.m. on 29.11.2022. This show cause notice as to why the order imposing penalty be not made under section 271(1)(c) of the Act gives less than 24 hours to the petitioner, whereby it had asked the petitioner to appear in person or through a duly authorised representative. This shorter period of less than 24....