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Commissioner of Income Tax, Patiala Versus Nachhattar Singh & others

2015 (5) TMI 868 - PUNJAB & HARYANA HIGH COURT

Arrears of income tax - Attachment of accounts and money in these accounts was appropriated towards arrears of income tax - Whether the civil suit filed by the plaintiff/respondent was not barred under Section 293 of the Income Tax Act? - Held that:- A perusal of Section 293 of the Income Tax Act reveals that no suit shall be brought in any Civil Court to set aside or modify any proceeding taken or order made under the Income Tax Act thereby leaving no ambiguity that a Civil Court is prohibited .....

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Janta Janta Scheme (Regd.) but have not returned a finding of fraud against the department.

The plaintiff/respondent No.1 was competent to file a suit for recovery against M/s Janta Janta Scheme (Regd.) but in absence of any allegation of fraud against the department, could not maintain a suit against the Income Tax Department. The substantial question of law is consequently answered in favour of the appellant by holding that in the facts and circumstances of the present case, the jur .....

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nal District Judge, Patiala. Nachhattar Singh, respondent No.1 filed a suit for recovery alleging that he had deposited certain amounts with M/s Janta Janta Scheme (Regd.), Sirhind but the Income Tax Department has attached these amounts. The plaintiff also pleaded that as M/s Janta Janta Scheme (Regd.) has induced him by fraud to deposit these amounts, the suit for recovery may be decreed. The Income Tax Department, filed a written statement controverting averments in the plaint and pleaded tha .....

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having received any amount from the plaintiff/respondent No.1. After considering the pleadings, the trial Court framed the following issues:- i) Whether the plaintiff is entitled to the suit amount? OPP. ii) Whether this court has no jurisdiction to try the suit? OPD. iii) Whether the suit is not maintainable in the present form? OPD. iv) Whether the receipts are not admissible in evidence? OPD. v) Whether the suit is under value? OPD. After going through the pleadings and evidence, the trial C .....

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its that there is no question of the Income Tax Department playing any fraud or appropriating any property belonging to Nachhattar Singh. The Income Tax Department in order to recover arrears of income tax, attached money belonging to M/s Janta Janta Scheme (Regd.). The fact that Nachhattar Singh may or may not have deposited money with M/s Janta Janta Scheme (Regd.) or may have been defrauded by M/s Janta Janta Scheme (Regd.) is irrelevant and, therefore, cannot be the basis of a claim against .....

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d against Nachhattar Singh, the jurisdiction of Civil Courts is not barred. I have heard counsel for the parties and perused the impugned orders. The substantial question of law that arises for adjudication is Whether in the facts and circumstances of the case, the civil suit filed by the plaintiff/respondent was not barred under Section 293 of the Income Tax Act? A perusal of the facts reveals that M/s Janta Janta Scheme (Regd.) was a defaulter of the Income Tax Department. The Income Tax Depar .....

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as well as the first appellate Court have decreed the suit by holding that jurisdiction of Civil Courts is not barred as money was received by M/s Janta Janta Scheme (Regd.) by playing a fraud. Section 293 of the Income Tax Act reads as follows:- 293. No suit shall be brought in any civil court to set aside or modify any proceeding taken or order made under this Act; and no prosecution, suit or other proceeding shall lie Regular Second Appeal No.176 of 1988 -5- against the Government or any off .....

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