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TMI Blog2013 (4) TMI 451X X X X Extracts X X X X X X X X Extracts X X X X ..... the earliest . If the petitioner is able to satisfy the authorities on the valuation and if the value of the said property is sufficient enough to safeguard the interest of the Revenue - Then the respondents shall consider and revoke the provisional attachment insofar as the debts and security deposit due from third parties - The petitioner is given one week time from the date of receipt of a copy of this order to submit his further request in this regard and the competent authority shall consider the same and pass appropriate orders within three weeks thereafter - These writ petitions are disposed of in the above terms. - W. P. Nos. 28055 to 28059 of 2012 - - - Dated:- 2-4-2013 - R. SUDHAKAR,J. For the Petitioner : Mr. P. S. Raman, Senior Counsel for Mr. C. Prasanna Venkatesh For the Respondents : Mr. T. Pramod Kumar Chopda ORDER Heard Mr.P.S.Raman, learned Senior Counsel appearing for the petitioner and Mr.T.Pramod Kumar Chopda, learned Standing Counsel for the respondents. 2. By consent, the writ petitions are taken up for final hearing and disposed of by the following order. 3. The issue for consideration in all these writ petitions is the provisional atta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f income for the assessment year 2011-2012 showing loss of approximately Rs.2,67,00,000/- On 25.4.2012, the first respondent along with the Deputy Commissioner of Income Tax and two other Assistant Commissioners of Income Tax formed a Survey Team and conducted survey under Section 133A of the Act at the registered office and also at the site/administrative office of the petitioner/company. The officers, consequent to the survey made under Section 133A of the Act, impounded books of accounts and documents under the cover of a letter dated Nil. Thereafter, the first respondent passed orders of provisional attachment of property in terms of Section 281B of the Act in each one of the cases. 5. For better clarity, the brief order of provisional attachment in each of the cases is extracted hereunder: W.P.No.28055 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, 196 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... SCHEDULE Name of the owner Survey No. Village Description Area M/s.KDH PropertiesPrivate Limited R.S.No.1632/4 (Part) New S.No.1632/20 and 1632/21 of an extent of about 8 grounds 695 sq.ft. and 9 grounds 1811 sq.ft. Third Floor, 'A' Wing, KGN Towers, 31/32, Commander-in-Chief Road, Egmore, Chennai 600 008. 8027 sq ft Super built-up area M/s.KDH PropertiesPrivate Limited Third Floor, 'A' Wing, KGN Towers, 31/32, Commander-in-Chief Road, Egmore, Chennai 600 008. 5448 sq ft Super built-up area 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 23rd July, 2012." W.P.No.28057 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 procee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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.28059 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.4,00,00,000/- from their debtor namely M/s.Kanishk Overseas, 628, Street No.11, Sardar Bazar, Delhi 110 027. And Whereas the undersigned is of the opinion that for the purpose of protecting ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he department's claim. 8. On 31.7.2012, the petitioner made a representation to the authorities to withdraw the provisional attachment and after considering the claim of the petitioner, it appears that the provisional attachment in respect of the bank accounts was withdrawn by the respondents on 7.8.2012. Since the claim of the petitioner for withdrawal of the provisional attachments made vide the notices, which are challenged in these writ petitions, was not considered, the present writ petitions are filed stating that there is no justification for provisionally attaching the debts and security deposit due and payable to the petitioner from third parties, as attachment in respect of the property at Door No.31/32, Commander-in-Chief Road, Egmore, Chennai 600 008 is sufficient to cover the entire demand, if any made by the department. 9. The first contention of the learned Senior Counsel appearing for the petitioner is that there is a basic error in the calculation. The second and primary contention urged the learned Senior Counsel is that the property at Door No.31/32, Commander-in-Chief Road, Egmore, Chennai 600 008 measuring 8027 Sq.Ft. and 5448 Sq.Ft. (totalling 13475 Sq.Ft. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the extent of Rs.1 Crores have been evidenced during the survey. The assessee has accepted the fact during the survey. The assessee, so far, neither paid the tax effect on this nor filed revised return including such income in respect of Asst. Yr. 2012-13 as accepted at the time of survey. Hence provisional attachments were made attaching leased property namely 13475 sqft building at KGN Towers, invoking section 281B of the Act. Aggrieved against the same the present writ petitions were filed by the petitioner company." 12. As has been pointed out by the learned Senior Counsel for the petitioner, assuming for the moment that the approximate tax liability will be Rs.6.70 Crores for the assessment year 2011-12, the value of the land and building at Door No.31/32, Commander-in-Chief Road, Egmore, Chennai 600 008 should be considered for the purpose of safeguarding the interest of the Revenue insofar as the claim against the petitioner. In this regard, it is to be noticed that the value of the property, according to the petitioner's statement, is about Rs.22 Crores and that can be verified. As per the petitioner's working, even if the stock value as determined by the department is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... davit filed, the probable tax liability is approximately Rs.6.70 Crores. In my considered view, if the petitioner is able to establish the valuation of the property at Door No.31/32, Commander-in-Chief Road, Egmore, Chennai 600 008 as stated by cogent and proper materials acceptable to the Income Tax Department, subject to final assessment, the property at Door No.31/32, Commander-in-Chief Road, Egmore, Chennai 600 008 can continue to be under provisional attachment as per Section 281B of the Act and all other debts and security deposits due from third parties can be released from provisional attachment. A decision on the above issue has to be taken by the authority based on the petitioner's representation given earlier and the further representation to be given as undertaken before this Court. 15. Under such circumstances, the petitioner is given an opportunity to make a detailed request to the competent authority enclosing the valuation report in respect of the property at Door No.31/32, Commander-in-Chief Road, Egmore, Chennai 600 008 at the earliest and the same shall be considered by the competent authority on merits as indicated by this Court herein above. If the petitioner ..... X X X X Extracts X X X X X X X X Extracts X X X X
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