TMI Blog2003 (1) TMI 54X X X X Extracts X X X X X X X X Extracts X X X X ..... s) : P. K. MISRA. JUDGMENT P.K. MISRA J.- Heard Mr. V. Ramachandran, learned senior counsel, for the petitioner, and Mrs. Pushya Sitaraman for the respondents. The petitioner has prayed for quashing the order bearing G.I. No. 4-S of 1995-96 and 1996-97, dated November 27, 2002, issued under section 281B of the Income-tax Act, 1961, by the second respondent, i.e., the Deputy Commissioner of Income-tax, Central Circle II(1), Chennai. The petitioner is a public limited company, registered under the Companies Act, engaged in the business of manufacture of paper and leasing of equipment. For the financial year 1994-95 (assessment year 1995-96), the petitioner-company had filed its return under section 139 of the Income-tax Act on Novembe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was issued by the Deputy Commissioner of Income-tax, Central Circle-11(1), Chennai, which is to the following effect: "Whereas in your case the income-tax proceedings for the assessment years 1995-96 and 1996-97 are pending and the liabilities for income-tax including interest, penalties, etc., for the above assessment years is likely to exceed Rs. 19 crores; and Whereas I am of the opinion that for the purpose of protecting the interests of the Revenue, it is necessary to attach provisionally the refund due to you in the block assessment to the extent of Rs. 9,35,53,885. (Total refund Rs. 11,18,82,613- demand due for 1995-96 and 1996-97 consequent on revision of assets giving effect to the order under section 263 amounting to Rs. 1,83 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... all be deemed to be proceedings for the assessment of any income or for the assessment or reassessment of any income which has escaped assessment. (2) Every such provisional attachment shall cease to have effect after the expiry of a period of six months from the date of the order made under sub-section (1): Provided that the Chief Commissioner, Commissioner, Director General or Director may, for reasons to be recorded in writing, extend the aforesaid period by such further period or periods as he thinks fit, so, however, that the total period of extension shall not in any case exceed two years: Provided further that where an application for settlement under section 245C is made, the period commencing from the date on which such appli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e taken to be illegal and without jurisdiction. Subsequent communication, containing the so called reasons, has been given by the Deputy Commissioner of Income-tax. There is no dispute that the Deputy Commissioner of Income-tax is not the person authorised under section 281B(2), proviso. In aforesaid view of the matter, the order relating to extension of provisional attachment must be taken to be illegal and non est. As a matter of fact, a similar view has been taken by a Division Bench of the Gujarat High Court in Ilaben Ramanlal Zariwala v. Union of India [1979] 118 ITR 852. For the aforesaid reasons, the order impugned is quashed and the writ petition is allowed. No costs. Consequently, the connected W.P.M.P. is closed. - - TaxTMI ..... X X X X Extracts X X X X X X X X Extracts X X X X
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