Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2018 (4) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (4) TMI 139 - HC - Income TaxRefund of amount deducted from the petitioner account due to garnishee proceedings - garnishee proceeding initiated against the petitioner on account of income tax dues not of the petitioner but of the respondent District Mining Officer - Exercise of jurisdiction under section 226 (3) (x) by ITO - Held that:- We are of the considered view that the ITO (TDS) Bhagalpur cannot act arbitrarily and extend favour to the Mining Department and release their Bank account and decide to attach the Bank account of the petitioner and recover the tax liability from the Bank account of the petitioner. After exchange of pleading it has emerged in this case (a) there was no amount recoverable from the petitioner, (b) on 14.10.2017 the petitioner has surrendered the settlement of Mining lease and the State Government vide letter dated 20.10.2017 directed calculation of outstanding and as such on 23.10.2017 while passing order declaring assessee in default under Section 226(3)(x) the aforesaid development was not considered. Accordingly, the order contained in Annexure-12 dated 23.10.2017 is hereby set aside. After closure scrutiny of the entire facts and circumstances of the case, we notice that neither the Income Tax Department nor the Mines Department has come out with any corrective measures to refund the excess amount or the amount deducted from the bank account of the petitioner and as such we hereby direct the Income Tax Department to forthwith return the amount recovered from the bank account of the petitioner as we are of the considered view that the action of the Department is illegal, arbitrary and totally unauthorized in the peculiar facts and circumstances, since amount was recovered by the respondent Income Tax Department therefore the Department is liable to pay the said amount with interest at the rate applied - We direct that after refund of the amount recovered from the bank account of the petitioner, the Income Tax Department may pursue the matter for recovery in accordance with law against the Mines and Geology Department and take all legal recourse which is admissible under the law including under Section 276B and 276BB.
|