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2005 (7) TMI 69 - HC - Income TaxRefund of amount recovered from bank account of petitioner arbitrarily – petitioner has not been served with a notice u/s 226(3) before the recovery was made from its accounts with the Bank - notice was served only on April 11, 2005, whereas the amount has been realised/recovered by way of attachment of the two bank accounts on April 7, 2005. The entire action of Revenue appears to have been taken in a hasty and most arbitrary manner just to pre-empt and foreclose the option available to the petitioner to approach the higher authority for grant of interim relief - action of respondent No. 1 has, in fact, shaken a citizen's faith in the impartiality of public administration. Thus, the notice of demand dated March 29, 2005, reducing the period from 30 days to one day, cannot be sustained and is hereby quashed - the action of Revenue, in recovering the sum of Rs. 94,14,606.70 on April 7, 2005, from the bank accounts of the petitioner, is wholly arbitrary and illegal. Since the notice of demand issued under section 156 of the Act has been quashed, and there is no other notice of demand, as a consequence, the petitioner is entitled for the return of the entire amount which has been arbitrarily recovered. - As the petitioner is engaged in banking activities, the petitioner is also entitied for compensation of loss of Interest which it had to pay
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