PRAKASH ESWANTH vs. INCOME TAX OFFICER

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SCA/4855/2018HC GujaratGJHC24020329201810 September 2018Author: HONOURABLE MR. JUSTICE AKIL KURESHI,HONOURABLE MR. JUSTICE B.N. KARIA2 pages

AI SummaryWithdrawn

What did the High Court hold?

The High Court held that in view of the Revenue's withdrawal of the show-cause notice and the order passed under Section 179(1) of the Income Tax Act, 1961, no further order was required to be passed in the petition. The Court clarified that the disposal of the petition would not prevent the department from initiating fresh action under Section 179(1) if legally permissible and factually warranted. The Court explicitly stated that it was expressing no opinion on the merits of any such potential fresh action. The operative direction was to dispose of the petition.

What were the facts?

The petitioner, Prakash Eswanth, filed a Special Civil Application (SCA) No. 4855 of 2018 before the High Court of Gujarat at Ahmedabad. The petition challenged an order passed under Section 179(1) of the Income Tax Act, 1961, against the petitioner. The Income Tax Officer, Ahmedabad, was the respondent. The procedural history involves a show-cause notice dated 27.12.2017 and an order dated 16.02.2018 passed pursuant to it. The amount in dispute is not stated. The petition was filed in 2018.

What were the issues?

The High Court had to decide whether any further order was required in the petition. The Revenue, through its counsel, placed on record a letter dated 10.09.2018 from the respondent-Income Tax Officer, Ahmedabad. This letter conveyed the withdrawal of the show-cause notice dated 27.12.2017 and the consequential order dated 16.02.2018 passed under Section 179(1) of the Income Tax Act, 1961. The Revenue also stated that they had liberty to issue a fresh show-cause notice and pass a fresh order if needed. The petitioner's arguments are not recorded in the judgment.

Which sections of the Income-tax Act were involved?

Section 179(1)

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

C/SCA/4855/2018 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/SPECIAL CIVIL APPLICATION NO. 4855 of 2018 ========================================================== PRAKASH ESWANTH Versus INCOME TAX OFFICER ========================================================== Appearance: MR R SIVARAMAN, COUNSEL WITH MR DARSHAN R PATEL(8486) for the PETITIONER(s) No. 1 MRS MAUNA M BHATT(174) for the RESPONDENT(s) No. 1 ========================================================== CORAM: HONOURABLE MR.JUSTICE AKIL KURESHI and HONOURABLE MR.JUSTICE B.N. KARIA Date : 10/09/2018

ORAL ORDER (PER : HONOURABLE MR.JUSTICE AKIL KURESHI)

Counsel for the Revenue placed on record a letter dated 10.09.2018 received by him from the respondent-Income Tax Officer, Ahmedabad in which he has conveyed withdrawal of the show-cause notice dated 27.12.2017 and the order dated 16.02.2018 passed pursuant to such show-cause notice under section 179(1) of the Income Tax Act, 1961 against the petitioner with a liberty to issue fresh show-cause notice and to pass fresh order, if needed.

In view of these developments, no further order is required to be passed in this petition. It is made clear that disposal of this petition would not preclude the department from initiating C/SCA/4855/2018 ORDER fresh action under section 179(1) of the Act if otherwise permissible in law and facts so warrant. We express no opinion with respect to the same. Petition is disposed of. (AKIL KURESHI, J) (B.N. KARIA, J) JYOTI V. JANI

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