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2021 (5) TMI 488 - HC - Income TaxSeeking release of attachment over the commercial property - recovery proceedings - entitlement to the prayer for lifting the attachment in order to pay the tax payable under the Direct Tax Vivad Se Vishwas Act, 2020 Scheme - HELD THAT:- As Income tax department is fully secured with attachment over the residential property of the petitioner together with five bank accounts with regard to the outstanding dues which is reflected in the portal of incometax department being ₹ 1.08 crores as on 9.2.2021. It is not disputed by the respondents that the valuation report dated 21.12.2018 of the Government Approved Valuer placed on record are not true and correct. Therefore, taking into consideration the value of the residential property which is valued at ₹ 7,42,40,000/, 50% thereof belonging to the petitioner is about ₹ 3.71 crores which is much more than the outstanding demand of ₹ 1.08 crores as reflected in the portal of the incometax department. The petitioner has made an application for release of attachment over the commercial property in order to pay the amount of tax to the incometax department in case of M/s. Rahul Textiles Industries Private Ltd wherein the petitioner is one of the directors and as the said company has applied under the resolution scheme of Direct Tax Vivad Se Vishwas Act, 2020, we are of the opinion that if the attachment placed by the respondents on commercial property situated at World Trade Centre being Office No. 407, Udhna Darwaja, Ring road, Surat, is lifted, there would not be any prejudice to the respondents incometax department as it is fully secured by continuing the attachment over the residential property and five bank accounts. On the other hand, if the attachment is lifted, the petitioner would be in a position to pay the tax payable under the resolution scheme to the department. The contention raised on behalf of the respondents that the attachment cannot be lifted to permit the petitioner to pay the tax under the Direct Tax Vivad Se Vishwas Act, 2020 scheme in case of the company in which the petitioner is director, cannot be accepted because the petitioner is requesting to lift the attachment on the ground that there is sufficient security as against the outstanding demand and the reason for lifting the attachment is in addition to the prayer of the petitioner to lift the attachment to show his bona fide. In such circumstances, it cannot be said that the petitioner is not entitled to the prayer for lifting the attachment in order to pay the tax payable under the Direct Tax Vivad Se Vishwas Act, 2020 Scheme.
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