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2014 (6) TMI 1042 - HC - Income TaxSeeking stay of recovery proceedings - garnishee proceedings initiated under s. 226(3) - recovery, which had been lying dormant from June, 2013 was revived just prior to the close of the financial year and recovery effected of the entire amounts demanded under the assessment order - intention of the 3rd respondent was to attach the amounts remaining in the account maintained by the petitioner with the additional 4th respondent-bank; without notice to the assessee - HELD THAT:- Act of withdrawal of the amount after having validly attached the amounts, without any real presumable cause for suspecting delay or impediment in such recovery, was a clear abuse, especially since there was no notice to the assessee, which is the mandate of due process of law. The Department acted without deliberation or due cause and the unavoidable consequence is a direction for the refund of amounts withdrawn under s. 226(3), after deducting ₹ 4 crores, as stipulated in the conditional order passed by this Court on 27th March, 2014. The refund shall be made within a period of two weeks with interest from the date of withdrawal, to the date of repayment, at the rate applicable in the account of the petitioner; if the account is interest bearing. The refund shall be made without looking at the result of the appeal, which is said to have been heard on 20th March, 2014, since the same is only a first appeal and substantial amounts are already recovered and allowed to be retained with the Revenue as per the interim order of this Court. This Court does not intend to go into the conduct of the individual officer, since the learned standing counsel points out that she is new to office and had only acted in anxiety to protect Revenue. This Court cannot also discount the pressure brought upon subordinate officers; when, as referred to in UTI Mutual Fund [2012 (3) TMI 333 - BOMBAY HIGH COURT] the Chairman, CBDT, himself, has addressed the Chief CIT, Director Generals, etc., of the IT Department, requiring speedy recovery and consequent weightage in the normal incidence of service. This Court has to necessarily practise the judicial restrain, it preached at the beginning. Suffice it to observe that the zeal to serve the nation shall not cross the bounds of law and result in over-zealous actions infringing upon the rights of citizens, for whom the State exists.
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