- (1.) BY the court : In the present interlocutory application, the applicant-petitioner seeks stay on penalty proceedings.
(2.) ON 23rd March, 2011, a notice has been given by Addl. Director of IT stating that as per the provisions of S. 271C of the IT Act, 1961, since the petitioner has failed to deduct the tax required to be paid under the provisions of Chapter XVII-B, the petitioner was liable to pay penalty of a sum equal to the amount of tax. By the said show-cause notice, the company was asked to explain why penalty under S. 271C of the Act should not be imposed. By the said notice, the company was asked to remain present on the specified date. Since the SLP is pending before this Court, we hereby direct the Company to file its representation/reply and appear before the Officer concerned without prejudice to its rights and contentions in the pending SLP. The Officer will decide the penalty proceedings in accordance with law. However, it is made clear that, pending further orders from this Court, no steps will be taken by the Department to enforce the order that may be passed by the Competent Officer. The interlocutory application is, accordingly, disposed of.;