TMI Blog2001 (1) TMI 12X X X X Extracts X X X X X X X X Extracts X X X X ..... ure H to the petition) issued by respondent No.1--Deputy Commissioner of Income-tax, Central Circle 1(3), Ahmedabad, refusing to issue income-tax clearance certificate under section 230A(1) of the Income-tax Act, 1961 (hereinafter to be referred to as "the Act"). The petitioner-trust has contended that the petitioner is an assessee under the Act and has been filing returns of income regularly and its assessments up to the assessment year 1998-99 have been completed. It is further submitted that the income of the petitioner-trust is exempted under the provisions of the Act and there is no outstanding liability as on today against the petitioner-trust. The petitioner-trust has given details about the educational activities of the instituti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to obtain income-tax clearance certificate. The petitioner, therefore, submitted an application under section 230A(1) of the Act in the prescribed form. The Assessing Officer sought further information, which has been supplied by the petitioner-trust. The petitioner-trust clarified that the petitioner-trust is not selling the property in question, but is only mortgaging it to the Indian Overseas Bank-a nationalised bank as security against loan. The petitioner has further submitted that such a mortgage does not amount to a transfer as envisaged under section 269UA(a) of the Act. Respondent No.1, however, rejected the application vide letter dated October 6, 2000, on the ground that the petitioner's case is not covered within the meaning ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... certificate as prayed for cannot be issued. At the hearing of this petition, Mr. K. A. Puj, learned counsel for the petitioner, has submitted that at present there is no outstanding income-tax liability against the petitioner-trust and, therefore, respondent No. 1 is not justified in refusing to issue income-tax clearance certificate. Strong reliance has been placed on the decision of this court in Gopal Industrial Estate v. ITO [1980] 123 ITR 727 and also on the decision dated October 12, 2000, rendered by this court in Special Civil Application No. 9572 of 2000 and cognate matters (Troika Parentals v. Union of India [2002] 253 ITR 410). It is further submitted that without giving-up the petitioner's challenge to the order of provisi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the issuance of income-tax clearance certificate ought not to have been withheld by the respondent-authorities only on the ground that some liability may be fixed on the petitioner-trust in future. The petitioner's contention is supported by the decision in the case of Gopal Industrial Estate's case [1980] 123 ITR 727 (Guj), wherein this court has held that section 230A of the Income-tax Act, 1961, has been enacted as a part of the machinery for collection and recovery of the income-tax and other taxes. It is an aid to the recovery of taxes when they become due, in the sense of assessment orders having been passed and the exact amount of tax due from a particular assessee in respect of a particular year having been determined. It is onl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l today, there is no order passed by any authority fixing any tax liability on the petitioner-trust, respondent No.1 was not justified in not issuing the income-tax clearance certificate. However, as regards the grievance against the provisional attachment of the property in question, which is also the subject-matter of the mortgage with the bank, learned counsel for the petitioner has challenged the said order which is supported by learned counsel for the Revenue. It is, however, not necessary to go into the said controversy at this stage, as the petitioner-trust has already offered its another property for provisional attachment as per the application dated January 11, 2001, along with a copy of the valuer's report, The report indicate ..... X X X X Extracts X X X X X X X X Extracts X X X X
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