JAYANTI SHARMA TEJA Vs. SECRETARY GOVERNMENT OF INDIA MINISTRY OF FINANCE NEW DELHI

JUDGEMENT

(1.) Now, we have Dr. Dharma Teja, a well known figure in the shipping industry before us in this case. He calls in question the notice issued by the ITO, New Delhi, to the Pan American Airways not to book any passage or issue air ticket to Dr. Dharma Teja without insisting on income-tax clearance certificate as required under s. 230(1) of the I.T. Act as unconstitutional and arbitrary.

(2.) Dr. Teja is citizen of India. He started a shipping company by name said company.

(3.) He was its chairman. The company was taken over in 1966-67 and nationalised during 1971-72 by the Government of India. During this time, there were several complaints about the affairs of the company as a result of which an enquiry was conducted and prosecutions were launched against Dr. Teja which ended in conviction and, ultimately, Dr. Teja was brought to India under extradition proceedings where he served the sentences until he was released under the amnesty. In October, 1966, his passport was also impounded. While this was on, the tax authorities started proceedings under the I.T. and the W.T. Acts. Assessments were made ex parte as notices sent to the known address of Dr. Teja outside the country were returned either unserved or refused. As per the assessments, tax to the tune of several crores was due from Dr Teja. A sum of , Rs. 3,72,94,000 awarded as compensation towards the shares held by him in the shipping company consequent on its being nationalised was adjusted. Still a huge amount to the tune of some crores was outstanding. But for some reason or other, the circular issued for impounding Dr. Tejas passport was withdrawn and he was granted a fresh passport on 12/05/1977. Dr. Teja once again left the country in July, 1977. Three was a controversy both in and out of Parliament and according to the petitioner, the then Prime Minister of India, Sri Morarji Desai, made a statement in Parliament in answer to a query by one of its members that