Delhi High Court restrains I-T dept from acting on show-cause notice to Sibal

New Delhi: The Delhi High Court on Thursday issued notice to the Income Tax department over the show-cause notice issued to Rajya Sabha MP and senior advocate Kapil Sibal on March 11 in connection with assessment proceedings pending against him.

The Division Bench of Justice Rajiv Shakdher and Justice Tara Vitasta Ganju, while directing the Income Tax authorities not to take action on the show-cause notice, observed that since the impugned notice has been challenged on jurisdiction as well as on the breach of principles of natural justice, it would require some amount of deliberation.

Issuing notice on Sibal’s petitions, the court asked the IT authorities to file a counter affidavit. “In the meanwhile, the concerned officer will stay his hands vis-à-vis the show cause notice dated 11.03.2023,” said the court.

The bench added that the concerned officer will first dispose of objections preferred by Sibal against the initiation of proceedings. “In this context, the concerned officer will issue a notice to the petitioner which would indicate the date, venue and time of the hearing,” said the court, adding the officer will pass a speaking order qua the objections preferred by Sibal and a copy of the same will be furnished to him.

The court further said: “In case the petitioner is aggrieved by the decision taken by the concerned authority, he would have liberty to take recourse to an appropriate remedy.” It listed the matter for hearing on September 14.