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2019 (6) TMI 672 - HC - Income TaxAttachment orders - Transfer/refund/repatriate the entire amount from the account of the Respondent to the respective accounts of the Petitioners - encasement of FDs of the Petitioners and transferred to the PD Account of the Respondent which does not carry any interest - delaying the proceedings u/s 153-A - HELD THAT:- The principles laid down by the Hon'ble Supreme Court in the case of KCC Software [2008 (1) TMI 12 - SUPREME COURT] apply to the facts of this case. We are respectfully bound by the said judgment. In our view, the judgment of the Patna High Court in the case of Smt. Bimla Singh [1997 (4) TMI 46 - PATNA HIGH COURT] also assists the case of the Petitioners. We accordingly direct the Respondents to invest the amount realised from those FDs and transferred to the PD Account of the Respondent No.2, in a fixed deposit of a Nationalized bank initially for a period of one year and for like period after obtaining further orders from this Court. The statement made by the learned counsel for the Petitioners that the Petitioners would invoke the provisions of Section 245-C after the proceedings are initiated u/s 153-A is accepted. It is made clear that if it is found that the amount encashed by the Respondents from the FDs are more than the tax liability of the Petitioners, the right of the Petitioners would be in accordance with the provisions of law including the provisions under the Income Tax Act, 1961. The amount shall be transferred to the fixed deposit within two weeks from the date of communication of this order. The amount which is directed to be invested by the Respondents in a fixed deposit, such fixed deposit shall be in the name of the concerned Respondent and shall not be encashed without leave of this Court.
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