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2022 (5) TMI 233 - HC - Income TaxRecovery proceedings - attachment of property - auction notice on the strength of Rule 68B of the IInd Schedule to the Income Tax Act, 1961 - Case of the petitioner is that the property was attached on 17.02.2004 and therefore, the sale of the attached property should have been made within three years from the date specified in Rule 68b of the IInd schedule to the Act, whereas the impugned attachment order is dated 28.03.2014 in ITCP-13 - HELD THAT:- The property which was sought to be attached is the property, which has come in the hands of the petitioner pursuant to a partition deed dated 23.10.2000. This was after the search on 07.07.1999. The tax that was demanded from the petitioner is for the block assessment period ie., from 08.07.1999 to 23.10.2000. Rule 4 of the IInd Schedule to the Income Tax Act, 1961 makes it clear one of the alternate method for recovering the tax. Apart from attaching the property and bringing the property for sale, the Department can also arrest the defaulters and detain such person in prison or appoint a Receiver for the management of the defaulter’s property both movable and immovable property. The tax liability of the petitioner does not get effaced by efflux of time. The Department can attach the property under Rule 48 r/w Rule 60 and bring the same property for sale in terms of the provisions of the IInd schedule to the Income Tax Act, 1961. Even if Rule 68(b) contemplates no sale beyond the period of limitation specified therein ie., 3 years during the period when the impugned proclamation of sale was issued on 28.03.2014 in Form ITCP-13 does not mean that the Department cannot issue a fresh order of attachment of the property. There are also other methods available under the Rules for recovering the tax due together with interest. Therefore, while I am inclined to allow this writ petition in the light of the limitation prescribed in Rule 68(b) of the IInd schedule to the Income Tax Act, 1961, while giving liberty to the respondents to initiate proceedings to recover the tax due and the interest thereon from the petitioner in terms of the other provisions of the aforesaid Rules including a fresh proceeding for attaching the subject property. WP allowed.
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