HC refuses to vacate stay on transfer of IT cases against HP

The Himachal Pradesh High Court today rejected the plea of Commissioner, Shimla seeking vacation of the stay on his orders for shifting of income tax cases of Chief Minister Virbhadra Singh, his family members and others to Central Income Tax circle, Chandigarh.
However, the bench said that keeping in view the request made by the respondent we deem it proper to hear this writ petitions expeditiously.
Division Bench of High Court consisting of Chief Justice Mansoor Ahmad Mir and Justice Tarlok Singh Chauhan observed that the counsel for the parties have only addressed arguments on preliminary issue without entering into the merits of the cases.

However, the petitioners have questioned the show cause notice of June 25 and July 14 passed by the Commissioner of Income Tax, Shimla regarding shifting of Income Tax cases to Chandigarh, the court said.
Referring to the point raised by the respondent that the interim stay order granted on the plea of petitioners was adversely affecting the respondent since the actions which are to be drawn in a time bound manner would become time barred, the Bench said "We may observe that since the parties have not argued the cases on merits, it is not fair to return findings whether the stay is to be vacated or to be made absolute."

However, it is made clear that in case any action becomes time barred in the interregnum, the period from the date of passing of the stay order shall be excluded, while computing the time limit.
The Court fixed the next hearing on November 18.