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2021 (7) TMI 245 - AT - Income TaxRecovery proceedings - Attachment orders - NCLT's order is binging and any recovery of an amount in excess of the specified amount - HELD THAT:- Hon'ble Supreme Court after considering the tax value involved, deemed it appropriate to dismiss the tax appeal leaving the question of law for adjudication at appropriate stage. The Hon'ble Rajasthan High Court in the case of Ultra Tech Nathdwara Cement Ltd. v. UOI [2020 (4) TMI 269 - RAJASTHAN HIGH COURT] had held that NCLT's order is binging and any recovery of an amount in excess of the specified amount in the NCLT's order is totally illegal and arbitrary. The Hon'ble Andhra Pradesh & Telangana High Court in the case of Leo Edibles & Fats Limited v. Tax Recovery Officer [2018 (8) TMI 62 - TELANGANA & ANDHRA PRADESH HIGH COURT] had held that the Income Tax Department cannot claim any priority merely because of fact that order of attachment was issued long prior to initiation of liquidation proceedings under Code against company. The Madras High Court in the case of Official Assignee v. T.R. Bhuvaneswari [2016 (6) TMI 291 - MADRAS HIGH COURT] had held that the Official Assignee need not go before Central Board of Direct Taxes praying for waiver of interest under sections 234A, 234B and 234C as Insolvency Court itself can consider question of waiver of interest in terms of power conferred under section 7 of Presidency Towns Insolvency Act, 1909. The other judicial pronouncements relied by the learned AR are also to the effect that NCLT orders are binding and the Revenue cannot recover any amount other than specifically mentioned in the said order. We are of the view that the Revenue being not in a position to recover any amount exceeding ₹ 1 lakh in the facts of this case, no useful purpose would be served in adjudicating the issue raised in this appeal. Taking into consideration the tax value involved, we dismiss the Department's appeal being below the monetary limit specified under the Board Circular No. 17/2019 dated 8th August, 2019.
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