2024 (2) TMI 703

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....orders of assessment on the ground that the directions issued by this Court in T.C.A. No.224 of 2019, viz., that the assessing authority would undertake the exercise of fact finding by determining the fair market value of the shares in terms of Explanation to Section 56(2)(viib) of the Income Tax Act, 1961 (hereinafter referred to as "the Act"), was not adhered / complied with. 2. Brief facts: The Company was initially formed by Mr.B.G.Raghupathy and his wife Sasikala Ragupathy, each holding 5000 shares. Upon the death of Mr.B.G.Raghupathy, his shares devolved on his daughter Mrs. Vaani Raghupathy. In order to purchase a property in Adyar, Chennai, Mrs.Sasikala Ragupathy brought in a sum of Rs. 23.32 crores through Banking Channels ag....

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....ack to the learned assessing authority for undertaking the said fact finding exercise. The assessee will be free to raise all factual and legal contentions including the point about the said amount being treated as 'gift' from mother to daughter. The assessee may also seek necessary clarification from the Central Board of Direct Taxes on administrative side." (emphasis supplied) 5. It is submitted by the learned counsel for the petitioner that pursuant to the above orders of this Court, they approached the Central Board of Direct Taxes (CBDT) for a clarification vide letter dated 01.11.2019. While the said request for clarification was pending, the Respondent had issued a notice on 03.02.2021 under Section 142(1) of the IT Act....

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....2020 and 23.08.2021. However, the impugned order came to be passed the following day that is on 28.09.2021. 5.3. It was submitted by the learned counsel for the petitioner that the writ petition was filed during Covid and in view of the delay in getting the writ petition numbered and to ensure that the challenge to the impugned orders are not hit by limitation, an appeal was also filed. It is further submitted that the same was filed for the limited purpose of saving limitation. A memo has been filed wherein it is stated that the petitioner has filed a petition for withdrawal of the appeal filed by them before the NFAC / CIT(A) on 27.10.2021. 5.4. It is informed by the learned counsel for the petitioner that their request has been sub....

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....rthcoming. It is thus evident that the direction of this Court has not been complied. Any order contrary / disregarding the direction of this Court cannot be sustained as it renders the order bad for want of jurisdiction, in this regard it may be relevant to refer to the decision of the Hon'ble Supreme Court in the case of East India Commercial Co. Ltd. v. Collector of Customs, reported in AIR 1962 SC 1893 wherein it is held as under : "31.....Section 167(8) of the Sea Customs Act can be invoked only if an order issued under Section 3 of the Act was infringed during the course of the import or export. The Division Bench of the High Court held that a contravention of a condition imposed by a licence issued under the Act is not a....