Sachin Narayan. v. Income-Tax Department (2019)417 ITR 641 (Karn)(HC)

The Prevention of Money Laundering Act, 2002

S. 50(2): Summons- Summons cannot be quashed in Writ proceedings — [ S. 3, 50(3) , Art . 20 ,226 ]

Dismissing the petition the Court held that , it is trite law that at the stage of show-cause notice, charge sheet, summons or notice to appear, constitutional courts would not interfere so as to interject the proceedings and thereby prevent the authorities from proceeding. Ordinarily a writ petition would not lie against a show-cause notice for the reason that it does not give rise to any cause of action.Summons issued under section 50(2) of the Act has nothing to do with the regulations as defined under the Regulatory Rules. The rules are referable only to proceedings for adjudication and not to pre-adjudication proceedings. In fact, section 50(2) does not refer to an accused at all. At the pre-adjudication stage, i.e., during investigation stage, the authorities are not required to state or reveal the nature of the material upon which they intend to rely for summoning a person for investigation. Accordingly, dismissing the writ petition, that summons clearly disclosed that they had been issued in exercise of power vested under section 50(2) and 50(3) of the Act. There being no challenge to the Constitutional validity of these provisions and the jurisdiction of the authority not being in serious dispute, the writ petition on the ground of investigation being hit by article 20 of the Constitution of India could not be entertained at this stage.