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TMI Blog2005 (5) TMI 15X X X X Extracts X X X X X X X X Extracts X X X X ..... nancial loss which the appellant has allegedly suffered as loss of interest on the maturity value of the NSCs and UTI units for a period between October 21, 1989 and November 27, 1992. The appellant herein was the plaintiff who was also an assessee. A search and seizure operation was conducted at the residential and business premises of Shri Prem Kumar under the directions of the Director of Income-tax, Hyderabad. Shri Prem Kumar also happened to be the "karta" of the appellant at the relevant time. During the aforesaid search UTI units and NSCs belonging to the HUF were seized on June 12, 1989, by the Assistant Director of Income-tax, Bangalore. The appellant/plaintiff, however, after the search and seizure operation, lodged a protest and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dents wherein, amongst other objections taken both on maintainability as also on the merits, an objection was also raised regarding the maintainability of the suit under the provisions of section 293 of the Income-tax Act. On the basis of the pleading of the parties in the suit, several issues were framed, including issue No. 3 which was to the following effect: "Whether the suit is barred under the provisions of section 293 of the Income-tax Act?" As the aforesaid issue goes to the root of the suit, therefore, the court observed that the said issue should be heard as a preliminary issue. Subsequent thereto the suit was transferred to the district court in view of increase in the pecuniary jurisdiction of the district court. The parties w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the basis thereof he has submitted that the civil court would not have jurisdiction to entertain the suit and the same was rightly dismissed by the learned trial court. In support of his contention, he has relied upon a decision of the Supreme Court in CIT v. Parmeshwari Devi Sultania [1998] 230 ITR 745 and in Union of India v. Natwerlal M. Badiani [2001] 250 ITR 641 which is a Full Bench decision of the Gujarat High Court. We have carefully perused the aforesaid provisions of the Income-tax Act as also the aforesaid two decisions. We have also carefully perused the record placed before us and examined the same in the context of the submissions raised by counsel appearing for the parties. So far as the plea of deciding all the issues ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dence of Prem Kumar who was the karta of the appellant/plaintiff during the search and seizure operation conducted in the said residential premises. For release of the same, the appellant approached this court in a writ petition in which an order was passed that it should first exhaust the alternative remedy that is available to the appellant under the provisions of the Income-tax Act. Pursuant to the said order, the appellant took recourse to the alternative remedy that is available namely, the provisions of sub-section (11) of section 132 of the Income-tax Act. When no order was passed by the competent authority of the Income-tax Department on the said application, again a fresh writ petition was filed in this court contending, inter alia ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... manded payment of interest in terms of section 132B(4) and in the case of non-payment of the same, it could have appropriately moved the Commissioner in revision under section 264 of the Income-tax Act. The appellant could also make a similar prayer in the writ petition which apparently was not done. In the facts and circumstances of the case and in the light of the aforesaid provisions of section 293 of the Income-tax Act, we agree with the findings recorded by the learned trial court that a civil suit of the nature, which is filed by the appellant herein, is not maintainable. In coming to the aforesaid conclusion, we also derive support from the aforesaid decisions of the Supreme Court and the Gujarat High Court which are directly on the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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