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| The Tax Publishers2020 TaxPub(DT) 4517 (Mad-HC) INCOME TAX ACT, 1961
Section 276C Section 279
Where assessee challenged validity of show cause notice issued for prosecution proceedings by contending that Principal Director of Income Tax (Investigation), was not a competent authority to issue such notice in terms of section 279, appeal of assessee was rendered infructuous in view of subsequent developments of his case, wherein final prosecution order was passed.
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Prosecution - Competent Authority to issue show cause notice of prosecution proceedings - Lack of jurisdiction of Principal Director of Income Tax (Investigation) -
Assessee filed writ petition against SCN issued for prosecution of assessee under section 276C in pursuance of a search under section 132 conducted at his residence in which, inter alia unaccounted cash was seized by income tax authorities. Assessee contended that Principal Director of Income Tax (Investigation) had no jurisdiction to issue SCN of prosecution proceedings, in terms of section 279. Held: Appeal of assessee was rendered infructuous and issue need not be decided on merits of the contentions because the assailed SCN ultimately ended in final prosecution order, which was neither under challenge before High Court. Writ appeal was dismissed as infructuous in view of subsequent developments and leaving assessee free to assail sanction order in accordance with law or to raise his defence before Competent Court which was seized of the Trial in matter.
REFERRED : Krishnaswami Vijayakumar v. Pr. CIT 2017 TaxPub(DT) 5238 (Mad-HC).
FAVOUR : Against the assessee.
A.Y. :
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