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TMI Blog2012 (2) TMI 306X X X X Extracts X X X X X X X X Extracts X X X X ..... arnishing order, revocation of the notice will be of no consequence - Held that:- The attachment is only interim arrangement and it also does not attain the finality with the payment to the person who is entitled to receive the amount for whom the garnishing order was passed till liability of that defaulter attains finality and money is adjusted under lawful order. Attachment order would itself will fell if the garnishing order and the notice itself is withdrawn by the A.O. requiring re-payment of the money by the department to the Bank. In that situation, petitioner may approach the A.O. for revocation of the garnishing order and further we direct the CIT to proceed with the appeal preferred by the petitioner expeditiously. X X X X Extracts X X X X X X X X Extracts X X X X ..... the case of Hindustan Coca Cola Beverage(P) Ltd. Vs. CIT, reported in (2007) 293 ITR 0226 held that the Central Board of Direct Taxes issued Circular No. 275/201/95-IT(B) on 29.1.1997 which declares that no demand visualize under section 201(1) of the Income Tax Act should be enforced after the tax deduct or has satisfied the Officer-In-charge of TDS that taxes due have been paid by the deductee-assessee . However, this will not alter the liability to charge under section 201(1A) of the Act till the date of payment of taxes by the deductee- assessee or the liability for penalty under section 271C of the Income Tax Act. Therefore, according to the learned Sr. Counsel for the petitioner, since deductee has paid the tax amount, therefore, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... other modes of recovery. As per sub-section(3)(i), the Assessing Officer has been given power to give a notice in writing require any person from whom money is due or may become due to the assessee or any person who holds or may subsequently hold money for or on account of assessee, to pay to the Assessing Officer or Tax Recovery Officer either forthwith upon the money becoming due or being held or at or within the time specified in the notice. This power can be exercised only when money can be paid after it becomes due. 10. The copy of such garnishing notice is also required to be served upon assessee as provided in sub-clause-(iii) of sub-section(3) of Section 226 of the said Act and as per sub-clause(vi) of sub-section (3) of Section 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rovides that a right has been given to the person whose property is sought to be taken under the garnishing order and therefore, sub-clause(vii) of sub-section(3) of Section 226 of the said Act made it explicitly clear that such notice of garnishing can be withdrawn at any time or from time to time and it can be amended or revoked , obviously even after execution of garnishing order. 12. The apprehension of the learned Sr. Counsel for the writ petitioner is that once the money has been taken away by the department under garnishing order, revocation of the notice will be of no consequence has no legal basis because of the reasons that with the withdrawal of the notice of garnishing, the action taken in furtherance of garnishing order falls ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... there is no order of stay by the appellate authority. In that situation, the Assessing Officer was under obligation to proceed with the order passed by itself and could have proceeded to recover the amount 13. Therefore, that attachment order upon making of payment by the bank to the Assessing Officer itself will fell if the garnishing order and the notice itself is withdrawn by the Assessing Officer which will require the re-payment of the money by the department to the Bank consequently placing to the account of the writ petitioner, who then has the right to withdraw that amount from the bank, therefore, end of the attachment order in garnishing proceeding and payment of the amount to the department, in the facts and circumstances is of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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