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2022 (7) TMI 338 - HC - Income TaxSeeking release of funds from the attached bank account to meet the essential expenditure - Validity of Petition in view of provision u/s 132(9B) - forum shopping - Provisional attachment orders made under the provisions of FEMA - Petitioner seeking modification of the order passed by this Court by relying on the order 2022 (7) TMI 301 - DELHI HIGH COURT passed by a learned Single Judge of this Court directing the Directorate of Enforcement to release a further amount of Rs. 25 crores in favour of the Petitioner to meet its essential expenditure as well as towards salaries of employees - HELD THAT - As petitioner seriously refutes the contention of forum shopping . He states that WP(C) 2022 (7) TMI 301 - DELHI HIGH COURT had been filed as it pertains to a different cause of action. He, however, admits that in view of the subsequent orders dated 16th June, 2022 under Section 281B of the Act passed by the Assessing Officer, being ACIT, Central Circle-25, New Delhi, the petitioner would need to file a fresh writ petition. This Court is of the view that as the impugned orders dated 17 th December, 2021 have expired on 17th June, 2022 due to operation of law, the present writ petition is infructuous. Accordingly, the present writ petition along with application is disposed of with liberty to the petitioner to file a fresh proceeding in accordance with law to challenge the orders dated 16th June, 2022 passed under Section 281B. It is clarified that this Court has not expressed any opinion on the merits of the controversy. The rights and contentions of all the parties are left open.
Issues:
1. Modification of order dated 31st May, 2022 2. Validity of orders dated 17th December, 2021 under Section 132(9B) of the Income Tax Act, 1961 3. Release of amount by Directorate of Enforcement 4. Application filed by Enforcement Directorate before the Supreme Court in SLP(C) 7551/2022 5. Allegation of 'forum shopping' by the Petitioner 6. Expiry of impugned orders dated 17th December, 2021 7. Disposal of the present writ petition with liberty to file a fresh proceeding Analysis: 1. The Petitioner filed an application seeking modification of the order dated 31st May, 2022, passed by a learned Single Judge of the Court, directing the Directorate of Enforcement to release an additional amount of Rs. 25 crores for essential expenses and employee salaries. 2. The Respondents argued that the present application is unsustainable as the orders dated 17th December, 2021, challenged in the petition under Section 132(9B) of the Income Tax Act, 1961, expired on 17th June, 2022, due to the operation of law. They highlighted that subsequent orders dated 16th June, 2022, under Section 281B of the Act by the Assessing Officer were not challenged, making the present proceedings irrelevant. 3. The Respondents further mentioned that no amount had been released by the Directorate of Enforcement following the order dated 31st May, 2022, passed in a different case by a Single Judge of the Court. 4. It was brought to light that the Enforcement Directorate had filed an application before the Supreme Court challenging the Petitioner's conduct of approaching the Single Judge of the Court despite the Supreme Court's involvement, citing 'forum shopping' as the reason. 5. The Petitioner's senior counsel defended against the accusation of 'forum shopping,' stating that the previous petition was based on a different cause of action. However, acknowledging the subsequent orders under Section 281B of the Act, the counsel admitted the need for a fresh writ petition. 6. The Court noted that the impugned orders dated 17th December, 2021, had expired by operation of law on 17th June, 2022, rendering the present writ petition ineffective. 7. Consequently, the Court disposed of the present writ petition, allowing the Petitioner to file a fresh proceeding to challenge the orders dated 16th June, 2022, passed under Section 281B of the Act. The Court clarified that no opinion on the merits was expressed, leaving the rights and contentions of all parties open for future proceedings. The next hearing date was canceled.
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