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2019 (11) TMI 1010 - ALLAHABAD HIGH COURTAssessee deemed in default - Recovery of Outstanding Tax demands - HELD THAT:- A plain reading of the impugned letter dated 12th September, 2019, reveals that the writ petitioner has been asked to make an upfront payment of ₹ 20 lacs before 15th September, 2019 and from October, 2019, it has been directed to pay monthly instalments of ₹ 7 lacs for a period of 12 months or decision of the pending First Appeal, whichever is earlier. Whether the Deputy Commissioner of Income Tax, Central Circle, Meerut, while issuing the letter dated 12.09.2019, gave any cogent or justifiable reason in order to substantiate the payment requirement in order to have the assessee’s bank account released? - Certainly, the Deputy Commissioner of Income Tax, Central Circle, Meerut, is well within his right to impose conditions for release of the bank account, provided the same conforms to the applicable instructions/circulars/ guidelines, issued by the CBDT from time to time. In the facts of the instant case, however, it is palpably evident that the conditions imposed upon the assessee for release of its bank account is bereft of any reason, not to mention, absence of cogent or justifiable reasons. As such, the impugned letter dated 12th September, 2019, cannot be sustained in law and is liable to be set aside and quashed and is, accordingly, set aside and quashed. The concerned AO is directed to take a fresh decision in the matter upon considering the letter of the writ petitioner dated 22nd August, 2019 addressed to the DCIT, Central Circle, Room No. 319, 3rd Floor, Central Circle, Meerut. Such decision, needless to mention, shall be supported with cogent and justifiable reasons and shall conform to the applicable written instructions/circulars/guidelines, issued by the CBDT from time to time.
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