TaxTMI 
TaxTMI 
2025 (1) TMI 929
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....d of. CONT.APP.(C) 2/2025 and CM APPL. 2337/2025 1. The instant appeal under Section 19 of the Contempt of Courts Act, 1971 (hereinafter "the Act") has been filed on behalf of the appellant challenging the impugned order dated 8th January, 2025 passed by the learned Single Judge in the contempt case bearing CONT.CAS(C) No. 242/2018. 2. Briefly stated, a survey under Section 133A of the Income Tax Act, 1961 (hereinafter "IT Act") was conducted at the premises of one M/s Vishal Iron Works Pvt. Ltd. Thereafter, certain documents were seized as per Section 132 of the IT Act and according to the IT Department, the said documents brought out that the proprietor of the aforesaid company had introduced the respondent herein to the Oriental....
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....e said application may be considered before the learned Single Judge, who adjudicated the said contempt case. 6. Accordingly, the learned Single Judge vide the impugned order dated 8th January, 2025 directed the appellant to deposit the entire amount of interest @ 6% per annum accumulated till then with and has further directed to release the amount already deposited alongwith the said interest amount accrued therein to the respondent herein. 7. Aggrieved by the impugned order, the appellant has filed the instant appeal seeking setting aside of the same. 8. Learned senior standing counsel appearing on behalf of the appellant submitted that the impugned order has been passed by the learned Single Judge without taking into considerat....
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...., including the contents of the appeal, documents on record as well as the impugned order. 14. At this juncture, it is pertinent to mention that a preliminary objection has been raised on behalf of the respondent that the instant appeal is not maintainable in terms of Section 19 of the Act. For convenience, Section 19 of the Act is reproduced hereunder: "Section 19 of the Contempt of Courts Act, 1971 - (1) An appeal shall lie as of right from any order or decision of High Court in the exercise of its jurisdiction to punish for contempt- (a) where the order or decision is that of a single Judge, to a Bench of not less than two Judges of the Court; (b) where the order or decision is that of a Bench, to t....
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....t an order in which punishment has been awarded to the contemnor. The relevant extracts of the same is as follows: "11. The position emerging from these decisions, in regard to appeals against orders in contempt proceedings may be summarised thus: 1. I. An appeal under Section 19 is maintainable only against an order or decision of the High Court passed in exercise of its jurisdiction to punish for contempt, that is, an order imposing punishment for contempt. 2. II. Neither an order declining to initiate proceedings for contempt, nor an order initiating proceedings for contempt nor an order dropping the proceedings for contempt nor an order acquitting or exonerating the contemnor, is appealable under Section 19 of....
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....aw, the position of law pertaining to Section 19 of the Act is that the appeal against the orders passed in the contempt proceedings cannot be maintainable if such an order is devoid of any punishment or guilt imposed upon the contemnor. Therefore, in the instant case, the instant appeal under the said provision is maintainable before this Court only if the impugned order awarded punishment or held the appellant guilty of the contempt proceedings. 17. The said position of law has also been discussed by the Co-ordinate Bench of this Court in the case of Sarojini Nagar Jhuggi Jhopri Vikas Samiti v. Suresh Kumar, 2022 SCC OnLine Del 3669, wherein, it was observed that an appeal under Section 19 of the Act is maintainable only when a contemp....
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.... this Court through video conferencing at 4 pm to explain as to why the directions of this Court have not been complied with and why he should not be punished in accordance with law." 19. Upon perusal of paragraph nos. 6, 7 and 8 of the impugned order, it is observed that the learned Single Judge has merely passed a direction to the appellant to deposit the entire interest amount with this Court's Registry and to release the already deposited amount alongwith the said interest amount accrued therein in favour of the respondent. Furthermore, upon failure to comply with the said direction, the learned Single Judge sought for the appearance of the Principle Director of the appellant-Department to explain qua non-compliance of the said direc....