Delhi High Court restrains Income Tax authorities from acting on show cause notice to Kapil Sibal

The Delhi High Court on Thursday ordered the Income Tax authorities to "stay their hand" on the show cause notice issued to Senior Advocate and former Union Law Minister Kapil Sibal in relation to tax reassessment proceedings against him..The order was passed after Sibal moved the High Court against the show cause notice was issued to him on March 11.A division bench of Justices Rajiv Shakdher and Tara Vitasta Ganju ordered the tax officer to first deal with and dispose of through a speaking order the objections Sibal has raised to the notice."In this context, the concerned officer shall first issue notice to the petitioner (Sibal) which would indicate the date, venue and time of the hearing," the Court ordered..The Court further said that since the notices issued by the IT department have been challenged on the basis of jurisdiction as well as principles of natural justice, the matter would require some consideration.The bench then issued notice on Sibal's petition and asked the authorities to file their responses. The case will now be considered on September 14..The reassessment notices have been issued to Sibal under Section 153C of the Income Tax Act, 1961 for the assessment years 2013-14 to 2018-19.Six petitions have been filed by the Rajya Sabha Member of Parliament challenging the same..Appearing for Sibal today, Senior Advocate P Chidambaram argued that the notices were issued six years later in May 2021 and pointed out that the department is in a great hurry. Chidambaram said that Sibal filed his return on June 16, 2021. "A request was made on November 3, 2021 seeking a copy of the satisfaction note and reasons/material based on which the notice under Section 153C had been issued. This request was reiterated by petitioner on March 1, 2023...They were furnished only on March 9 this year and material or reasons were furnished on March 10. The very next day, a show cause notice is issued," Chidambaram argued. Counsel appearing for the IT department said that the proceedings were bona fide and that the officer can proceed based on the material presented to him.