On Thursday (23rd March 2023), the Delhi High Court, presided by the division bench of Justice Rajiv Shakdher and Justice Tara Vitasta Ganju restrained the Income Tax Department from moving forward with the show-cause notice sent to Rajya Sabha Member and senior lawyer Kapil Sibal over the assessment proceedings still pending against him.
The bench directed the income tax authorities to file a response on the petition filed by Kapil Sibal.
Sibal has contested the notification sent by the IT division regarding A.Y. (assessment year) 2013 under Section 153C of the Income Tax Act, 1961.
Kapil Sibal was represented by senior attorney P Chidambaram, who argued that the search involving the Global Window Group had taken place in May 2018 and that Sibal had received the notice under Section 153C of the Act six years later, in May 2021.
Furthermore, the petitioner filed his returns on June 16, 2021, in accordance with the aforementioned notice. On November 3, 2021, a request was made for a copy of the satisfaction note and the justifications or supporting documentation used to issue the Section 153C notice. The petitioner renewed this request on March 1, 2023.
The impugned notice has been contested on jurisdictional grounds as well as for violating natural justice principles, and the bench noted that it would necessitate some thought.
The bench further stated that the compliance officer will stay taking action in response to the show cause notice due on March 11, 2023.
The court scheduled a follow-up hearing for September 14 and directed the officer in question to address the complaint of Kapil Sibal first.
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