9911796707
TMI Blog2019 (6) TMI 672X X X X Extracts X X X X X X X X Extracts X X X X ..... TMI 46 - PATNA HIGH COURT] also assists the case of the Petitioners. We accordingly direct the Respondents to invest the amount realised from those FDs and transferred to the PD Account of the Respondent No.2, in a fixed deposit of a Nationalized bank initially for a period of one year and for like period after obtaining further orders from this Court. The statement made by the learned counsel for the Petitioners that the Petitioners would invoke the provisions of Section 245-C after the proceedings are initiated u/s 153-A is accepted. It is made clear that if it is found that the amount encashed by the Respondents from the FDs are more than the tax liability of the Petitioners, the right of the Petitioners would be in accordance wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nk Manager of Indian Overseas Bank directing him not to remove, part with or otherwise deal with the contents of all types of accounts including saving bank account, recurring deposit account, fixed deposit accounts, current accounts etc., maintained by the Petitioner No.1, his wife and the partnership firms. 4. On 19th October, 2018, the Indian Overseas Bank informed the Petitioner No.1 about passing of the order dated 17th October, 2018 by the Respondent No.5 under Section 132(3) of the Income Tax Act, 1961. The summons was already issued to the Petitioner No.1 to submit various documents on various dates. The statement of the Petitioner No.1 has been recorded. The Respondents have transferred a sum of ₹ 17,79,49,301/- from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red to the PD Account of the Respondent No.2 does not carry any interest. If the Respondents succeed ultimately in the pending proceedings, the Petitioners would lose the substantial amount of interest which would have earned on the FDs of the Petitioners. He submits that the amount encashed by the Respondents from such FDs thus may be directed to be invested in the fixed deposit which would carry interest. He submits that for the period during which the amount is wrongly transferred to the PD Account of the Respondent No.2, the right of the Petitioners to claim interest be kept open. 7. Ms. Amira Razaq, the learned counsel for the Revenue on the other hand, invited our attention to the various statements made by the Petitioner No. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the event the assessee succeeds, he would be entitled to interest as provided in the statute. The Hon'ble Supreme Court in that judgment directed that the assessment has to be completed on or before the time statutorily provided. 11. In our view, the principles laid down by the Hon'ble Supreme Court in the case of KCC Software (supra) apply to the facts of this case. We are respectfully bound by the said judgment. In our view, the judgment of the Patna High Court in the case of Smt. Bimla Singh (supra) also assists the case of the Petitioners. In so far as the effect of the statement made by the Petitioner No.1 before the Authority under Section 132 read with Section 131 of the Income Tax Act, 1961 is concerned, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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