2020 (11) TMI 1104 - HC - Income Tax

Seeking reverse/transfer back the amount wrongly transferred/credited - Amount credited in the account of respondent No.4 maintained with respondent No.2 bank to the current account of the petitioner maintained with respondent No.3 bank - petitioner has broadly stressed that this is a bona fide mistake - HELD THAT - The facts show that the averments of the petitioner lack complete bona fide. Other than a bald averment claiming that the said amount has been sent by an error there is nothing on record to show any error committed by the petitioner. In fact a plea was strongly raised that the money was to be transferred to a company Paras Milk and Food Corporation. There is no material placed on record to show any such intention or liability on the part of the petitioner to transfer funds to Paras Milk and Food Corporation. As manifest that this is a bald plea being made by the petitioner that by oversight and mistake the said sum was inadvertently transferred to the account of respondent No.4 cannot be accepted. The contentions of respondent No.1 that respondent No.4 is merely an entry provider as is apparent from the facts stated in the counter affidavit throw further doubt on the averment being made by the petitioner. It is also clear that there are highly disputed questions of facts which have been raised by the petitioner. There is no merit in the present petition. Given the fact that there are disputed questions of fact liberty is granted to the petitioner to take steps as per law for recovery of the alleged claims before an appropriate forum/appropriate Civil Court.

Summary

Issues:
Petitioner seeking reversal of amount transferred to wrong account, Respondent's refusal to refund, Allegation of illegal activities against respondent, Disputed facts regarding the transfer.

Analysis:
The petitioner filed a writ petition seeking a direction to reverse the amount mistakenly transferred to respondent No.4's account by Axis Bank. The petitioner claimed that the transfer of Rs.49,90,000 was an error made by a substitute accountant while intending to invest in a project. Despite the petitioner's request for a refund, Axis Bank informed about a statutory freeze on the account. The respondent No.1, in a counter affidavit, revealed that respondent No.4's account was attached due to a significant tax demand and suspicion of illegal activities related to accommodation entries. The respondent argued that the transfer cannot be reversed to conceal illegal activities. The court heard both parties and found the petitioner's claim lacking bona fide as no substantial evidence supported the error claim. The court highlighted the lack of proof of intention to transfer funds to the intended company, Paras Milk and Food Corporation, casting doubt on the petitioner's assertions.

The court noted the respondent's contentions about respondent No.4 being an entry provider, further undermining the petitioner's claims. The judgment emphasized the presence of highly disputed facts regarding the transfer, leading to the dismissal of the petition. The court granted liberty to the petitioner to pursue legal remedies for recovery in a civil court due to the disputed facts. The judgment disposed of the petition, allowing the petitioner to take necessary legal actions without prejudice to their contentions.