9911796707
TMI Blog2013 (4) TMI 451X X X X Extracts X X X X X X X X Extracts X X X X ..... purpose of protecting the interests of the revenue it is necessary so to do, he may, with the previous approval of the Chief Commissioner, Commissioner, Director General or Director, by order in writing, attach provisionally any property belonging to the assessee in the manner provided in the Second Schedule. Explanation. For the purposes of this sub-section, proceedings under sub-section (5) of section 132 shall be deemed to be proceedings for the assessment of any income or for the assessment or reassessment of any income which has escaped assessment. (2) Every such provisional attachment shall cease to have effect after the expiry of a period of six months from the date of the order made under sub-section(1) : Provided that the Chief Commissioner, Commissioner, Director General or Director may, for reasons to be recorded in writing, extend the aforesaid period by such further period or periods as he thinks fit, so, however, that the total period of extension shall not in any case exceed two years : Provided further that where an application for settlement under section 245C is made, the period commencing from the date on which such application is made and ending with the da ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Mumbai 400077. It is ordered that M/s.HIMKANCHAN IMPEX PVT LTD, Mumbai 400077 is prohibited and restrained from making payment to M/s.KDH Properties Pvt Ltd., Chennai without prior sanction of the undersigned. Any such transaction shall be void as against any claim in respect of any income tax or other sum payable by the assessee as a result of the completion of the assessment proceedings. This order is passed with the prior approval of the Commissioner of Income-tax, Chennai-I, Chennai 600 034. Given under the signature and seal at Chennai, on 25th July, 2012." W.P.No.28056 of 2012: "PAN AACCK6839N/2012-13 July 23, 2012 ORDER OF PROVISIONAL ATTACHMENT OF PROPERTY U/S.281B OF THE INCOME TAX ACT, 1961 Whereas in the case of M/s.KDH Properties Pvt Ltd (AACCK6839N) (hereinafter referred to as assessee) and the assessment proceedings for assessment year 2011-12 is to be completed in accordance with the provisions of the Income Tax Act, 1961; And Whereas completion of proceedings for assessment year 2011-12 in this case are likely to result in a substantial demand; And Whereas the assessee is a resident possessing the Schedule mentioned property in India; And Whereas the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Security Deposit amount of Rs.1,37,63,547/- to M/s.KDH Properties Pvt Ltd., Chennai without prior sanction of the undersigned. Any such transaction shall be void as against any claim in respect of any income tax or other sum payable by the assessee as a result of the completion of the assessment proceedings. This order is passed with the prior approval of the Commissioner of Income-tax, Chennai-I, Chennai 600 034. Given under the signature and seal at Chennai, on 25th July, 2012." W.P.No.28058 of 2012: "PAN AACCK6839N/2012-13 July 25, 2012 ORDER OF PROVISIONAL ATTACHMENT OF PROPERTY U/S.281B OF THE INCOME TAX ACT, 1961 Whereas in the case of M/s.KDH Properties Pvt Ltd (AACCK6839N) (hereinafter referred to as assessee) and the assessment proceedings for assessment year 2011-12 is to be completed in accordance with the provisions of the Income Tax Act, 1961; And Whereas completion of proceedings for assessment year 2011-12 in this case are likely to result in a substantial demand; And Whereas the assessee is to receive a sum of Rs.2,00,00,000/- from their debtor namely M/s.Dhanalaxmi Trading Company, A-75, Mahavir Market, Sector 18, Near Onion Potato Market, Opposite APMC ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eedings. This order is passed with the prior approval of the Commissioner of Income-tax, Chennai-I, Chennai 600 034. Given under the signature and seal at Chennai, on 25th July, 2012." 6. According to the petitioner, besides attaching the immovable property measuring 8027 Sq.Ft. and 5448 Sq.Ft. (totalling 13475 Sq.Ft.) at KGN Towers, 'A' and 'B' Wings, 31/32, Commander-in-Chief Road, Egmore, Chennai 600 008, the authority has also proceeded to provisionally attach the amounts due from the debtors and depositors, who are liable to pay certain amounts to the petitioner/company. Such action is arbitrary and unreasonable. 7. The subject matter of the dispute in the present case arose out of the property situate at Door No.31/32, Commander-in-Chief Road, Egmore, Chennai 600 008. According to the petitioner, they own an area of 64,978 Sq.Ft. in the building situate at Door No.31/32, Commander-in-Chief Road, Egmore, Chennai 600 008, out of the total built up area of 1,28,420 Sq.Ft. While working out the profit for the assessment year 2011-2012, the Income Tax Department erroneously contended that the total built up area of the building that belonged to the petitioner/company is 1,28,4 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The learned Senior Counsel appearing for the petitioner pleaded that the valuation of the property at Door No.31/32, Commander-in-Chief Road, Egmore, Chennai 600 008, even as per the guideline value of Rs.16,500/- per Sq.Ft., would work out to about Rs.22 Crores and that amount is sufficient enough to safeguard the interest of the Revenue and, therefore, the attachment in respect of this property can remain till the final assessment is over and he also pleads for expeditious completion of the assessment proceedings. Consequently, the provisional attachment, the subject matter of other writ petitions, should be set aside as the interest of Revenue is safeguarded. 11. Per contra, Mr.T.Pramod Kumar Chopda, learned Standing Counsel appearing for the respondents, relying upon the counter affidavit filed by the respondents, refuted the factual dispute raised by the petitioner with regard to the area of the property at Door No.31/32, Commander-in-Chief Road, Egmore, Chennai 600 008. The basis for making provisional attachment is stated in paragraph (6) of the counter affidavit and the same reads as follows: "6. On a reworking of Closing Stock based on the above would result in a revis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gmore, Chennai 600 008 can be valued at the price at which it is stated by the petitioner. The petitioner has made a detailed request on 31.7.2012 to the authorities and undertakes to make further representation for release of the provisional attachment setting out the above stated factors. If the petitioner is able to establish that the value of the property at Door No.31/32, Commander-in-Chief Road, Egmore, Chennai 600 008 is sufficient to cover the tax liability that may arise on final assessment, then it is incumbent on the part of the department to consider the release of the provisional attachment order insofar as the debts and security deposits due from the third parties. This is because the provision of Section 281B of the Act clearly provides for safeguarding the interest of the Revenue and that cannot be more than what is likely to arise. The contention of the learned Senior Counsel for the petitioner is, therefore, tenable on this plea, as the department is entitled to provisionally attach such of those properties to protect the interest of the Revenue, as may be necessary. It would only mean that whatever is required to satisfy the claim for tax liability, the authority ..... X X X X Extracts X X X X X X X X Extracts X X X X
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