2019 (7) TMI 1633 - Tri - Insolvency and Bankruptcy

Withdrawal of order of attachment of refund issued against the Corporate Debtor - release of payment due (refund) - section 281B of the Income-tax Act, 1961 - HELD THAT - It is on record that the Income-tax Department on 4-10-2018 has passed an order of attachment of the refund, which was valid for the period of six months as per sub-section (2) of section 281B of the Income-tax Act, 1961, as amended from time to time. The time period of six months has expired on 3-4-2019. The Assessee/Corporate Debtor is under Liquidation. Therefore, the attachment order dated 4-10-2018 cannot be extended. However, the claim, if any, might have been filed within the stipulated time, either during the CIRP/Liquidation. The concerned Income-tax Department is directed to release the refund amounting to ₹ 4,20,76,684/- to the accounts of the Assessee/Corporate Debtor viz., M/s. Surana Corporation Limited within a period of six weeks, and file the compliance report - Application disposed off.

Summary

The Tribunal ordered the Income-tax Department to release a refund of Rs. 4,20,76,684 to the Corporate Debtor, M/s. Surana Corporation Limited, as the attachment order had expired and could not be extended due to the debtor being under liquidation. The Income-tax Department was directed to release the refund within six weeks. Compliance report to be filed. Application disposed of.