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TMI Blog2021 (5) TMI 488X X X X Extracts X X X X X X X X Extracts X X X X ..... to pay the amount of tax to the income tax department in case of M/s. Rahul Textiles Industries Private Ltd wherein the petitioner is one of the directors and as the said company has applied under the resolution scheme of Direct Tax Vivad Se Vishwas Act, 2020, we are of the opinion that if the attachment placed by the respondents on commercial property situated at World Trade Centre being Office No. 407, Udhna Darwaja, Ring road, Surat, is lifted, there would not be any prejudice to the respondents income tax department as it is fully secured by continuing the attachment over the residential property and five bank accounts. On the other hand, if the attachment is lifted, the petitioner would be in a position to pay the tax payable under the resolution scheme to the department. The contention raised on behalf of the respondents that the attachment cannot be lifted to permit the petitioner to pay the tax under the Direct Tax Vivad Se Vishwas Act, 2020 scheme in case of the company in which the petitioner is director, cannot be accepted because the petitioner is requesting to lift the attachment on the ground that there is sufficient security as against the outstanding demand and t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g the hearing and final disposal of this application, this Hon'ble Court be pleased to allow the petitioner to operate the aforesaid bank accounts and to further allow the petitioner, to receive and utilized any payments/credits therein without remitting the same to the Income Tax Department as per order of attachment passed u/s. 226(3), dated 09.12.2016 at Annexure- D- coll. D) This Hon'ble Court be pleased to grant any further or other relief as this Hon'ble Court deems just and proper in the interest of justice, and E) This Hon'ble Court be pleased to allow this application with costs against the respondent. 4. Short facts giving rise to this petition are that the petitioner is an individual assessed to tax under the provisions of the Income Tax Act, 1961 (here in after referred to as the Act, 1961 ). For the assessment years 2009 2010 to 2011 2012, assessment orders and penalty orders are passed in case of the petitioner and the same are carried in appeal and some orders are still pending adjudication before the appellate forum including this Court. After passing of the assessment orders and penalty orders for AY 2009 2010 to 2011 2012, demands ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Parlepoint Branch, Surat. Accordingly against total demand of ₹ 1,08,36,845/ one residential property, one commercial property and five bank accounts are attached. 6. According to the petitioner, fair market value of residential property attached is estimated at ₹ 3,71,20,000/ being 50% of the value as per the report dated 21.12.2018 of the Government Approved Valuer and fair market value of the commercial property attached by the department is ₹ 81,40,000/ as per the report dated 21.12.2018 of the Government Approved Valuer. The petitioner therefore, made an application before respondent no.2 Income Tax Officer, Ward -1(1)(3), Surat dated 12.2.2021 for release of attachment on the commercial property in view of the attachment over the property worth ₹ 4.52 crores as against outstanding demand of ₹ 1.08 crores. 7. It is the case of the petitioner that the petitioner has filed an application under Direct Tax Vivad Se Vishwas Act, 2020 for M/s. Rahul Textile Industries Private Limited wherein the petitioner is a director and to make the payment of tax under the said Scheme, the petitioner is in need of fund and therefore, if the attachment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pending as Sub Registrar is not releasing the documents of the property due to attachment of the commercial property by the Income tax department. 11. On the other hand, learned advocate Mr. Nikunt Raval with learned Standing Counsel Ms. Kalpana Rvaval submitted that the total outstanding demand pending in case of the petitioner is ₹ 1.08 crores and the petitioner has not paid the same by challenging the assessment orders before the appellate forum. It was submitted that the petitioner cannot pray for release of the attachment of property in order to pay up the demand raised under the resolution Scheme in one of the companies wherein the petitioner is a director. It was submitted that case of M/s. Rahul Textiles Industries Private Ltd. and case of the petitioner are different and payment for Direct Tax Vivad Se Vishwas Act, 2020 Scheme in case of company cannot be permitted by lifting the attachment on the commercial property belonging to the petitioner. As the petitioner has not paid the demand along with interest under section 220(2) of the Act, 1961, the petitioner is in default and hence respondent no.1 is justified by attaching the property of the petitioner along wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... scheme, it would be in the interest of justice to direct the respondents to lift the attachment on the commercial property forthwith so as to enable the petitioner to realise the amount of sale consideration on sale of commercial property and pay the amount of tax with the department for the said company of which the petitioner is a director to avail the benefit of the resolution scheme. 14. The contention raised on behalf of the respondents that the attachment cannot be lifted to permit the petitioner to pay the tax under the Direct Tax Vivad Se Vishwas Act, 2020 scheme in case of the company in which the petitioner is director, cannot be accepted because the petitioner is requesting to lift the attachment on the ground that there is sufficient security as against the outstanding demand and the reason for lifting the attachment is in addition to the prayer of the petitioner to lift the attachment to show his bona fide. In such circumstances, it cannot be said that the petitioner is not entitled to the prayer for lifting the attachment in order to pay the tax payable under the Direct Tax Vivad Se Vishwas Act, 2020 Scheme. 15. In view of the foregoing reasons, the petition su ..... X X X X Extracts X X X X X X X X Extracts X X X X
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