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2017 (11) TMI 920 - HC - Income TaxRecovery of dues - Obligation to pay only 20% of the outstanding dues - validity of garnish notice to the ICICI Bank - Held that:- The assessee in light of the circulars issued by CBDT was under an obligation to pay only 20% of the outstanding dues and as the same was not done, the department has started proceeding under Section 226(3) of the Income Tax Act, 1961. In the considered opinion of this Court, the department has rightly raised a demand by passing a speaking order. The issue regarding levy of tax of lease premium is not a subject matter of the present writ petition. The issue has to be decided by the authorities where an appeal is pending i.e. CIT(Appeal) and as the assessee has failed to pay 20% of the outstanding dues, this Court is of the opinion that the Department was justified in issuing a demand notice and was also justified in issuing letter dated 04/10/2017. The ICICI Bank has filed an application for intervention and the same is also allowed. The Bank has been heard by this Court. It has been stated by the ICICI Bank that on 05/10/2017, this Court has passed an interim order and it has been observed that there will be no coercive action against the petitioner Company and a legal notice was given by the lawyer of the petitioner Company to the ICICI Bank under the provisions of Contempt of Courts Act, 1971. The ICICI Bank in order to avoid any contempt has permitted transaction in the account which was freezed. It is really strange that in case there was some confusion in respect of interim order passed by this Court, nothing prevented the ICICI Bank to approach this Court. Merely because the learned counsel for the Company has given a legal notice to initiate contempt proceedings, the ICICI Bank has permitted withdrawal of the amount and therefore, in the considered opinion of this Court, the Income Tax Department shall certainly be free to take appropriate steps against the ICICI Bank strictly in accordance with law. This Court in light of the aforesaid as 20% of the demand has not been deposited by the petitioner Company, is of the opinion that no case for interference is made out in the matter and accordingly, the admission is declined.
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