MEHTA VEGETABLES PRIVATE LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) THESE two writ petitions involve identical questions and, therefore, they are being decided by this common judgment.

(2.) THE petitioners are aggrieved by the penalty imposed on them in terms of Sections 269SS and 269T of the Income-tax Act, 1961. Against the assessment orders, the petitioners have preferred regular appeals and in those appeals stay was not granted to the petitioners by the appellate authority. THE petitioners came up before this court after rejection of such applications on the grounds that the penalty which was sought to be stayed, is illegal and Sections 269SS and 269T of the Income-tax Act, 1961, are ultra vires the Constitution and, therefore, no demand could have been issued against the petitioners.

(3.) IT is further argued that there was no mens rea and the punishment was very harsh, more particularly when due to business losses the business has been closed and the entire assets of the firm have been sold out. The breach can be said to be a technical or venial breach.