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2016 (3) TMI 599 - HC - Income TaxNotice under section 226 (3) of the IT Act - attachment orders - Sick Industrial Companies (Special Provisions) Act, 1985 - Held that:- In the light of the provisions of section 22 of SICA, permitting the attachment to continue, prima facie, would be contrary to the provisions thereof as the same would amount to distraint against the properties of the petitioner. Besides, continuance of the attachment would not serve any useful purpose inasmuch as the petitioner would not be able to operate its bank accounts and the revenue would not be able to make any recovery. This court is of the view that the interest of the revenue would best be served by directing the petitioner to file an undertaking to an effect that in case it ultimately does not succeed in the petition, it would deposit an amount equal to the amount standing as on date in the above two bank accounts of the petitioner. However, in the opinion of this court, at this stage, it is not permissible for the respondent-authorities to continue with the attachment of the bank accounts of the petitioner. In the aforesaid premises, by way of interim-relief, the impugned notices dated 27.01.2016 issued to the Branch Manager, ICICI Bank, Ahmedabad and the notice dated 28.01.2016 issued to the Branch Manager, Bank of India, Ahmedabad, under section 226 (3) of the Income-Tax Act, 1961, are hereby stayed till the final disposal of the petition. The petitioner, however, shall furnish an undertaking before this court to an effect that in case, it does not succeed in the petition, it shall abide by any order that may be passed by the court, including deposit of the amount equal to the amount standing in the above bank accounts of the petitioner.
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