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2016 (5) TMI 927 - GUJARAT HIGH COURTRecovery proceedings - attachment of the bank account - applications made by the petitioner under section 220(6) - Held that:- Application under sub-section (6) of section 220 of the Act was made by the petitioner on 04.05.2015. The Assessing Officer not only did not pass any order thereon, but even though he was not inclined to entertain the application, he did not even deem it fit to inform the petitioner about the same. It is for the first time, in the affidavit-in-reply filed in these proceedings that the Assessing Officer has come out with the case that the application could not be entertained as it was filed after the period stipulated in the notice under section 156 of the Act had expired. On the other hand, the Assessing Officer has chosen not to take any decision on the application under section 220(6) of the Act and on the other hand, despite the pendency of the stay application, the respondents have resorted to coercive recovery against the petitioner by attaching the bank accounts as well as 114 flats of the petitioner. In the opinion of this court, during the pendency of the stay application, which had been filed almost immediately after the period stipulated in the notice under section 156 of the Act had expired, there was no warrant for the respondents to resort to drastic measures of making coercive recovery without first taking the decision on the application under section 220(6) of the Act. The action of the respondents in attaching the bank accounts and flats of the petitioner, therefore, cannot be sustained. Demand under the recovery notices shall remain stayed subject to the petitioner depositing with the Tax Recovery Officer a total amount of ₹ 2,25,00,000/- (Rupees two crore twenty five lacs only) in three equal installments of ₹ 75,00,000/- (Rupees seventy five lacs only) each on 31st May, 2016, 30th June, 2016 and 29th July, 2016. Shri Ankit Manubhai Kuchhadiya, Partner of the petitioner firm, shall file an undertaking before this court that he shall regularly make payment to the Tax Recovery Officer as stipulated hereinabove as well as to the effect that he will cooperate in the early disposal of the appeal, failing which the stay order will be cancelled. Upon the petitioner filing such undertaking before this court, the respondents shall forthwith lift all attachments made on (i) all properties belonging to the petitioner, particularly on 114 flats and the land belonging to the petitioner and (ii) Bank Account No.05332560003644 of the petitioner with HDFC Bank Ltd., Varachha, Surat. The respondents shall also ensure that the registration of attachment in the revenue records shall be forthwith deleted.
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