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2015 (2) TMI 252 - HC - Income TaxRecovery of dues - Demand notice from the petitioner-Bank - there is outstanding amount of ₹ 41 lacs from the respondent No.4 and the respondent No.4 has several fixed deposits with the petitioner-bank which comes to ₹ 31 lacs and if we include the interest on the said fixed deposits, it comes to ₹ 40 lacs - Held that:- Petitioner-Bank has paid an amount of ₹ 58,54,700/- to the IT Department on 25.03.2005 towards the outstanding tax dues of respondent no.4. The petitioner-Bank has further paid an amount of ₹ 58,37,991/- to the IT Department on 19.11.2012 towards the outstanding tax dues of respondent no.4. Admittedly, the amount paid by the petitioner-Bank (in liquidation) to the IT Department were not belonging to the petitioner- Bank but, it belonged to respondent no.4, who was the depositor of the Bank. The said amounts have been appropriated by the IT Department towards the outstanding tax demand due and payable by respondent no.4. From the above set of facts, it is evident that the petitioner-Bank has already released proportionate amount deposited by respondent no.4 in favour of the IT Department. As per the further affidavit filed by respondent no.1, respondent no.4 is still in arrears of tax demand to the tune of ₹ 43,85,806/- as on 31.03.2013. If that be so, then the same is to be recovered from respondent no.4 and not from the petitioner-Bank. Hence, the impugned Notice deserves to be quashed and set aside. The impugned Notice dated 25.07.2005 issued by respondent no.1 to respondent no.2 is quashed and set aside. It is, however, clarified that if any tax demand is due and payable by respondent no.4 herein, it shall be open to the IT Department to initiate necessary proceedings for recovering the same from the personal properties of respondent no.4. - Decided against revenue.
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