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2017 (2) TMI 461 - HC - Income TaxRecovery proceedings - eligible creditor - Held that:- The date on which the notice was issued, admittedly in view of the correspondence which has come on record, and complete documentary evidence clearly established that petitioner was creditor and fixed deposit receipt lien was with the petitioner bank. The Department has seized fixed deposit receipt, which was not proper. Therefore, the bank was a creditor and notice under section 226 of the Act and recovery pursuant thereto is misconceived and not proper. Therefore, order at annexure E against the petitioner is misconceived and ought not to have been issued under section 226(3). Assuming even if there are some fixed deposit receipts in the name of Shri Om Prakash Agrawal, i.e., also encashed. Therefore, the order is required to be quashed and set aside. Accordingly, order dated December 14/18, 2000 together with notice of the same date, which is at annexure A to the petition, is quashed and set aside.
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