TMI Blog2018 (12) TMI 1640X X X X Extracts X X X X X X X X Extracts X X X X ..... appeal. However, it is well open to the PDIT or any other Authority to proceed in accordance with law. Now, we are concerned with the amount of ₹ 213.30 Crores, which are receivables. In our considered view, this amount cannot be appropriated by the Income Tax Department at this juncture since the assessment proceedings are yet to be over and what are the subject matters of challenge in the writ petitions are the orders of attachment and search. Therefore, the parties should be left to agitate their respective rights and contentions in the pending writ petitions. We are of the firm view that nothing would survive for adjudication in this appeal. However, we are conscious of the fact that interests of the Revenue require to be protected. Writ appeal disposed with directions : i. A sum of ₹ 213.30 Crores (Rupees two hundred and thirteen crores and thirty lakhs only), which is stated to be receivables of the appellant - writ petitioner from the TNCSC and the ICDS shall be kept in an interest bearing account in the Indian Bank, High Court Branch to the credit filed by the appellant and the same shall remain in deposit subject to further orders to be passed by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Court and to obtain a protective cover against the departmental action. We support such conclusion with the following reasons. 5.The Division Bench passed an order on 02.11.2018 in this appeal which arose out of a challenge to an order dismissing the miscellaneous petition filed by the appeal to pass a suitable interim orders in the writ petition which was challenging the search and seizure operations as well as the orders of attachment passed against the assessees. The order passed by the Division Bench dated 02.11.2018 is quoted herein below: 'Heard Mr.P.S.Raman, learned Senior Counsel appearing for the appellant and Mr.A.P.Srinivas, learned Standing Counsel for the respondents for some time. 2.It appears that the appellant had moved the writ court seeking interim relief as against the search and seizure/attachment in the premises of the appellant by the respondent-authorities and they are aggrieved by the order of the learned Single Judge in dismissing the application which sought for interim order and therefore, they are before this Court. 3.The learned Senior Counsel appearing for the appellants would submit that there is some illegality in the procedu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uently with the order of attachment. The assessee accepted the order dated 02.11.2018 and went before the Commissioner who has passed the order dated 07.11.2018. Before the second petitioner, namely, the PDIT (Investigation), the authority has recorded that in the representation of the assessee dated 03.11.2018, certain facts were mentioned and assertions have been made. However, the authority has not dealt with the same on the ground that the matter is sub-judice before this Court. Taking into consideration the submissions made by the assessee that a sum of ₹ 417,46,20,742/- are the receivables for the four concerns, one of whom is the assessee, namely, Christy Friedgram Industry and considering the submissions made, the PDIT (Investigation) ordered that the payments due for suppliers of ₹ 117,18,38,346/- may be released to the assessee after the Investigating Officer verifies the genuineness of the claim and the balance surplus available from the receivables of ₹ 297,56,42,396/- are to be released or deposited in the PD account in the name of the PDIT (Investigation) towards part of the tax liability alone on the admitted undisclosed income of ₹ 1350 Crore ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of things, it is appropriate on the part of the Department to seek for leave from this Court to revoke the order dated 07.11.2018. Therefore, we find that it is not a case where the authorities are attempting to pass on the bug to the Court or to obtain protective orders so as to put the assessee in disadvantage position. Therefore, the preliminary objection raised by the assessee stands rejected. 9.Now, we move to consider the relief sought for by the assessee before us. In the opinion of the Department which is based upon the communication received from the Integrated Child Development Services (ICDS) and Tamil Nadu Civil Supplies (TMCS), the receivables is only ₹ 179,75,98,248/- and the assessee had reported receivables of ₹ 417.46 Crores. The Department is of the prima facie view that the assessee has misrepresented and furnished incorrect information regard the quantum of receivables before the authorities and hence, the order dated 07.11.2018 requires to be revoked. Therefore, the communication dated 26.11.2018 has been issued which is in the nature of show cause notice. The assessee's case is that the communication sent by the TNCS and ICDS to the author ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Civil Supplies Corporation (TNCSC) namely a sum of ₹ 51.29 Crores, the total receivables are arrived at to the tune of ₹ 461.61 Crores. Out of the said sum of ₹ 461.61 Crores, the PDIT directed the release of ₹ 248.31 Crores after deducting the amounts, which are stated to be paid to the suppliers, amounts towards expenses and advances required to procure raw materials. Thus, for the balance of ₹ 213.30 Crores, which are receivables from the TNCSC and the ICDS, the apprehension of the assessee and their group concern is that this amount is sought to be appropriated by the Department even prior to conclusion of the assessment proceedings. 5. Per contra, the learned Senior Standing Counsel for the Revenue has vehemently contended that this Court, while passing the order dated 03.12.2018, referred to the order passed by the other Division Bench dated 02.11.2018 and noted that there were two limbs to the direction/liberty issued/granted by the Division Bench and therefore, this Court should adjudicate upon that and in this regard, the learned Senior Standing Counsel has referred to what has been stated by us in paragraph 6 of the order dated 03.12.2018. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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