CWP No.867 of 2015 -1-SAILESH RANJAN 2015.05.15 10:12 I attest to accuracy and integrity of this document IN HIGH COURT OF PUNJAB & HARYANA AT CHANDIGARH CWP No.867 of 2015 Date of decision:13.05.2015 Commissioner of Income Tax-II Ludhiana ....Petitioner Versus M/s Patiala Carriers & another ......Respondents CORAM: HON'BLE MR.JUSTICE S.J.VAZIFDAR, ACTING CHIEF JUSTICE HON'BLE MR.JUSTICE G.S.SANDHAWALIA Present: Mr.Rajesh Katoch, Advocate, for petitioner. None for respondents. **** S.J.Vazifdar, Acting Chief Justice (Oral): 1. Rule. Rule returnable and heard finally. 2. Vide order dated 19.01.2015, notice of motion was issued for 17.03.2015. Though respondents were duly served, they were not present on 17.03.2015. They are not present today also. We, accordingly, proceed to decide writ petition. 3. petitioner has challenged order of Income Tax Settlement Commission, New Delhi (for short, 'ITSC'), calculating total income at `30,96,000/- and directing Assessing Authority to calculate tax with interest, accordingly. Certain other directions were also issued by ITSC. 4. hearing before ITSC were held between 12.09.2000 to 10.01.2014. Thereafter, ITSC addressed letter dated 25.04.2014 (wrongly typed as 25.04.2013). However, contents of letter itself indicate typographical error. letter reads as under: I am directed to refer to subject mentioned above and to draw your attention to Hon'ble Punjab and Haryana High Court's order dated 03/02/1997 in C.W.P. No.19303 of 1996 in which CWP No.867 of 2015 -2-SAILESH RANJAN 2015.05.15 10:12 I attest to accuracy and integrity of this document Hon'ble Court had given certain direction to Income Tax Authorities which is reproduced below: We direct respondent No.2 to send complete information of payments made by M/s Patiala Carriers (Regd.) to concerned Income Tax Authorities and we hope that appropriate steps will be taken by Income Tax Department for making thorough investigation regarding source from which M/s Patiala Carriers has made payment of amount of penalty. 2. In view of Hon'ble Punjab & Haryana High Court's order, you are directed to make investigation regarding source from which M/s Patiala Carriers has made payments of amount of penalty and also to ascertain capacity/status of parties who actually made payments of penalties vide copies of Sales Tax Department's penalty/detention orders as forwarded by Assessing Officer to ITSC vide letter dated 10/14/2014. In this regard your report should reach this office by 15.5.2014 positively. 5. petitioner's grievance is that it was not granted adequate time to furnish necessary information. grievance is justified, for more than one reason. Firstly, it is pursuant to orders of this Court that information was directed to be sent to Income Tax authorities. Division Bench expressed hope that appropriate steps would be taken by Income Tax Department for conducting thorough enquiry regarding source from which assessee/respondents, had paid penalty. impugned order was passed on 28.05.2014 (Annexure P15). In facts and circumstances of case, ITSC ought to have granted petitioner adequate time to furnish information. 6. Reliance upon Section 245D(3) of Income Tax Act, 1961, is also well founded. petitioner is entitled to at least 90 days to produce information. Therefore, observations of ITSC, especially in paragraphs No.16 & 17 of impugned order were not justified. 7. Accordingly, impugned order dated 28.05.2014 (Annexure P15), passed by ITSC, is quashed and set aside. matter is remanded to CWP No.867 of 2015 -3-SAILESH RANJAN 2015.05.15 10:12 I attest to accuracy and integrity of this document ITSC, to pass fresh order, after affording both parties opportunity of being heard. information sought vide said letter dated 25.04.2014, shall be furnished, latest by 13.08.2015. writ petition is, accordingly, disposed of. (S.J.Vazifdar) Acting Chief Justice 13.05.2015 (G.S.Sandhawalia) sailesh Judge Commissioner of Income-tax-II Ludhiana v. M/s Patiala Carriers & another