Look out Circular against CA despite co-operation in Investigation not justified

Lakshmi Satyanarayana Dutt Tadikonda Vs Union of India & Ors. (Delhi High Court)

In the given case, the petitioner is seeking the withdrawal of the Look Out Circular (LOC) issued against him and no other prayer has been pressed during the course of the arguments by the Ld. Sr. counsel for the  petitioner.

The petitioner according to him is a qualified chartered accountant and in 2008 migrated to Dubai to work as a Financial Controller for Jaleel Group of companies and has been living in Dubai ever since. On 02.2018, the petitioner was granted his latest residency visa by UAE. It is contended that the petitioner keeps on visiting India frequently to visit his family and for other purposes. On 03.12.2019, the petitioner arrived in India from Dubai and on 27.12.2019, he departed for Dubai without any impediments. However, on 06.01.2020, when the petitioner again arrived from Dubai to India at Hyderabad International Airport for some business meeting then at the time of immigration, the petitioner was informed by the concerned officers to meet with the Income Tax Authorities regarding some pending issues and no other details were given.

When on 08.01.2020, after completing his business meetings, the petitioner was leaving for Dubai from Hyderabad International Airport, then at the time of immigration, the petitioner was approached by few officers of Income Tax Department who served the petitioner with the copy of summons dated 08.01.2020 and took him to question him in regard to their investigation pertaining to Punj Lloyd Group.

The issuance of the LOC is a serious matter as it contains full particular of the individual which are sent throughout the world. Therefore, keeping in view the above said facts and circumstances, there is no justification in keeping the present LOC alive. The same is, therefore, directed to be recalled by the issuing authority. The following conditions are imposed on the petitioner :

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