Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2024 (1) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2024 (1) TMI 1038 - HC - Income TaxAttachment orders on immovable properties - As argued order of attachment was passed after the assessment orders had originally finalised by the assessing authority which have been now set aside - HELD THAT - Once there is no tax liability on the petitioner for which the petitioner s properties could be attached, there is no justification for keeping the attachment on the properties after the fresh assessment order always had been passed and refund has been found to be adjusted against the existing demands. In the statement filed on behalf of the respondents it is stated that the provisional attachment on the properties of the petitioner was valid only for a period of six months from the date of the order as per the provisions under Section 222(2)(b) of the Income Tax Act and the said provisional attachment could be extended up to two years or sixty days from the date of the order of assessment whichever is later. It is further stated that after expiry of period of six months or further period as the case may be, the order of attachment automatically comes to an end. In the case of the petitioner, the last attachment was on 30.12.2019 which was valid for a period of six months from 30.12.2019 and thereafter the order of attachment had become void ab initio and there is no provisional attachment on the properties of the petitioner as of today. Considering the said stand of the respondents that there is no order of attachment prevailing on the properties of the petitioner, the petitioner is free to deal with his properties in the manner it likes. In view of the specific stand taken by the respondents in their statement, nothing survives in this writ petition. Thus, it is made clear that there is no attachment on the properties of the petitioner.
Issues:
The issues involved in the judgment are the validity of attachment on immovable properties by the Income Tax Department and the subsequent disposal of the writ petition. Validity of Attachment: The petitioner filed a writ petition seeking a mandamus to lift the attachment on their immovable properties, as the Income Tax Appellate Tribunal had set aside the assessment orders and additions for the years 2012-13 to 2018-19. The assessing authority, on remand, deleted the earlier additions and determined a refund of Rs. 10,77,61,574 for the petitioner. The court noted that with no tax liability remaining, there was no justification for the continued attachment on the properties. The respondents stated that the provisional attachment was valid for six months from the date of the order, and in this case, the last attachment was on 30.12.2019, making the attachment void ab initio as of the present date. Consequently, the court found that there was no attachment on the petitioner's properties. Disposal of Writ Petition: Based on the respondents' statement confirming the absence of any prevailing attachment on the petitioner's properties, the court disposed of the writ petition. It was clarified that the petitioner was free to deal with their properties as they wished. The court concluded the judgment by noting the specific stand taken by the respondents and the absence of any attachment, thus finally disposing of the writ petition.
|