JUDGMENT

(Prayer: Writ Appeals filed under Clause 15 of The Letters Patent against the common order dated 03.08.2021 passed in WP Nos. 33432 and 33431 of 2017 respectively on the file of this Court.)

Common Judgment

R. Mahadevan, J.

1. Both these intra-court appeals are filed as against a common order dated 03.08.2021 passed by the learned Judge in WP Nos.33431 and 33432 of 2017.

2. The appellants have preferred the aforesaid writ petitions for issuance of a Writ of Certiorarified Mandamus, calling for the records of the first respondent contained in its order bearing No.TN/CN51/2015-16/34 & 35/IT dated 06.12.2017 and to quash the same as arbitrary, unjust and illegal and to consequently direct the first respondent to reconsider the applications filed by the appellants bearing No.TN/CN-51/2015-16/34 & 35/IT and pass a fresh order under section 245D(4) of the INCOME TAX ACT , 1961, after affording sufficient opportunities of being heard to the appellants in accordance with law.

3. For the purpose of disposal of these appeals, it is essential to look into the common averments made in the affidavits filed in support of the writ petitions and they are elucidated hereunder, in brief.

4.1. The appellant in W.A. No. 2632 of 2021 is the Managing Director of MRF Limited, dealing in tyre and rubber industry, finance and investment business as also consultancy and advisory services. It is stated that during the year 2005, for the purpose of commencing the consultancy and advisory service related business activities outside India, he opened a Joint Bank Account (US Dollar Account) along with his brother Kandathil M. Mammen (appellant in W.A. No. 2629 of 2021) with Standard Chartered Bank, Dubai Branch. In 2010, the name of Mr. Samir Thariyan Mappillai (brother's son) was also added as a joint holder. Subsequently, the appellants opened a joint bank account with UBS AG Bank, Singapore Branch, besides opening various other sub accounts in different currencies with the said banks. During the year 2007, it was decided to carry on the business activities substantially in the name of Moon Misty Enterprises Limited and it was registered in the British Virgin Island, in which the appellants and brother's son mentioned above, were shareholders, however, the entire management and administration of the said company vested with the appellants alone. Subsequently, on 17.07.2007, a bank account was opened in the name of the said company Moon Mist Enterprises Limited with UBS Bank, Singapore Branch, apart from opening various other sub accounts. On 03.05.2007, the appellants settled a trust known as Webster International Trust and the Trust in turn floated a company named as Fairwood Services Limited. The said Fairwood Services Limited opened account with UBS Bank, Singapore Branch on 11.05.2007 apart from various other sub-accounts. However, during the year 2011, Moon Mist Enterprise Limited and Fairwood Services Limited were liquidated, besides the Trust formed by the appellants was also terminated. Thereafter, the appellants have opened a joint account with First Gulf Bank, Dubai, closed the bank accounts opened in the name of Fairwood Services Limited and transferred the closing balance to the newly opened joint account with First Gulf Bank, Dubai Branch during July and August 2013.

4.2. At this stage, on 28.08.2013, a summons was issued by the Deputy Director of Income Tax under Section 131 of the Act calling upon the appellants to produce documents mentioned therein. The appellants submitted reply on 18.09.2013 narrating the above facts. They also appeared before the officials of the Income Tax Department in connection with the enquiry conducted on 22.01.2015. During such enquiry, the appellants were questioned about the transactions through the company called Moon Mist Enterprises, the reason for the closure of the said