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2013 (10) TMI 656 - BOMBAY HIGH COURTStay of recovery - attachment of bank accounts - Following Precedent – Held that:- The orders of the Income Tax Officer (Exemptions) and 19 August 2013 of the Addl. Director of Income Tax (Exemptions) have ignored the directions contained in KEC International Ltd. v/s. B.R.Balkrishnan [2001 (3) TMI 32 - BOMBAY High Court] - besides being cryptic and deserve to be set aside - We are not inclined to remit the matter to the same authorities, because the petitioner has already filed an appeal before the Commissioner of Income Tax (Appeals) and therefore it would be in the fitness of things, if the petitioner is directed to file a stay application before the CIT (Appeals), who should hear and decide the stay application as expeditiously as possible and preferably within three months from the date of filing of the stay application. Interim Arrangement - What interim arrangement is to be made during the pendency of the application before the CIT (Appeals) – Held that:- The petitioner shall not withdraw or encash fixed deposit lying with ICICI Bank and another deposit lying with HDFC Bank - The petitioner shall also not withdraw any amount from the petitioner's account with HDFC , but it will be open to the petitioner to convert the amount lying in the saving/current account into fixed deposit - the petitioner will be at liberty operate the petitioner's account with ICICI Bank - In view of the interim arrangement, as a part of interim order, garnishee notices shall remain stayed during the pendency of the stay application before the CIT (Appeals) - No recovery shall be made during pendency of the said application before the CIT (Appeals) and for a period of three weeks, in case the order of CIT (Appeals) is adverse to the petitioner - As per the provisions of section 226(3) (x) of the Income Tax Act,1961, noncompliance by the HDFC Bank and ICICI Bank with garnishee notices on account of operation of this order, shall not be treated as a default on part of HDFC Bank or ICICI Bank.
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