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TMI Blog2018 (10) TMI 1402X X X X Extracts X X X X X X X X Extracts X X X X ..... om such account to the department which was a sum which the petitioner still owed to DPS Commodities when the impugned communication was issued by the department to the bank. By combination of bank not carrying out such instructions forthwith, the petitioner repaying sum of ₹ 75 lacs after such order was passed utilising some other bank account, this Court thereafter passing interim order dated 25.9.2018 allowing the petitioner to operate the bank account lifting the rigors of attachment and the petitioner making false declaration on oath stating that on 22.9.2018, the petitioner owed no sum to DPS Commodities, the situation has come about where such sum of ₹ 75 lacs which the department could have accessed from the petition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the respondent Tax Recovery Officer under section 226(3) of the Income Tax Act ( the Act for short). 2. The petitioner is an individual and is manufacturing textile auxiliaries and water based emulsions in the name of Aditya Chemicals, a proprietary concern. For the business purpose, the petitioner had opened an account with HDFC bank, Memnagar branch, Ahmedabad. The petitioner would utilise this account for drawing LCs to be issued in favour of foreign exporters for import of goods utilised by the petitioner for manufacturing finished product being account no. 16758970000023. Besides this account, petitioner also has other bank accounts. 3. Respondent Tax Recovery Officer issued the impugned notice which was addressed to the petitio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es. The petitioner has further averred that the petitioner has issued several post dated cheques drawn on the said bank account, all of which would bounce if the account remains attached. 5. Under such circumstances, in our order dated 25.9.2018 while issuing notice, we had briefly recorded the petitioner's contentions and grievances. It was recorded that the petitioner had no concern with DPS Commodities except for having normal business relations. The department therefore, cannot use the petitioner's account for causing the recovery of the tax dues of DPS Commodities. By way of ad interim relief, the attachment order was stayed. 6. The department appeared in response to the notice and pointed out that the petitioner had bor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder : i) The petitioner filed an affidavit on 22.9.2018 making a false declaration that not a rupee is payable by the petitioner to DPS Commodities when in reality ₹ 75 lacs was due and payable on such date. ii) The petitioner was fully aware about the order of attachment passed by the department asking the petitioner's banker to pay to the department any sum due and payable to DPS Commodities towards incometax liabilities of DPS Commodities. Though counsel for the petitioner stated that such order was never served on the petitioner, in the petition, as noted, the petitioner has made averments that on account of such attachment, the petitioner's cheque bounced and the payee transporter informed the petitioner, upon whic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e petitioner owed no sum to DPS Commodities, the situation has come about where such sum of ₹ 75 lacs which the department could have accessed from the petitioner's balance to recover part of the tax dues of DPS Commodities, was thwarted. If such amount had been paid by the petitioner to the incometax department, its dues of DPS Commodities to that extent would have been squared up. In any case, the petitioner cannot take a stand that he utilised another bank account which was unattached by the department. The stand flies on the face of the record particularly when the petitioner was fully aware about order of attachment and had made a specific wrong declaration on oath stating that he owed no money to DPS Commodities. 10. Coun ..... X X X X Extracts X X X X X X X X Extracts X X X X
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