While denying anticipatory bail to an individual, the Karnataka High Court held that the Income Tax defaulters need not apprehend immediate arrest on receipt of show cause notice from the Income Tax department.
In the instant case, the petitioner received a notice from the Tax Recovery Office, Bengaluru directing him to appear before the authority and to show cause why the petitioner should not be committed to civil prison in execution of the said certificate?
The petitioner immediately approached the High Court for Anticipatory bail.
Justice John Michael Cunha has held that there is no ‘reason to believe’ on the part of the petitioner that he would be arrested in a non-bailable offence as he is not accused of committing any non-bailable offence so as to invoke the jurisdiction under Section 438 of Cr.P.C. it was noted that the apprehension expressed by the petitioner is also without any basis.
“As could be seen from the above Rules, the proceedings are initiated against the petitioner for recovery of the tax dues with the issuance of show cause notice as contemplated in Rule 73 of the Second Schedule. Rule 73 specifically provides that no order for the arrest and detention in a civil prison of a defaulter could be made unless the Tax Recovery Officer has issued and served a notice upon the defaulter calling upon him to appear before him on the date specified in the notice and to show cause as to why he should not be committed to civil prison. When a defaulter appears before the Tax Recovery Officer, he shall be given an opportunity of hearing and only thereafter, an order could be passed for detention of the defaulter in the civil prison. Therefore, the apprehension of the petitioner that on issuance of a show cause notice under Rule 73 of the Second Schedule of the Income Tax Act, he has a reason to believe that he would be arrested and detained in prison is wholly misconceived and misplaced.”Subscribe Taxscan AdFree to view the Judgment