Corteva Agriscience Seeds Pvt Ltd (Formerlyknown As Phi Seeds Pvt Ltd v. Deputy Commissioner Of Income Tax Circle 4(2)New Delhi

$~59 *IN THE HIGH COURT OF DELHI AT NEW DELHI +W.P.(C) 499/2024 CORTEVA AGRISCIENCE SEEDS PVT LTD (FORMERLYKNOWN AS PHI SEEDS PVT LTD)..... Petitioner ..... PetitionerThrough:Mr. Ajay Vohra, Sr. Adv. withMr. Aditya Vohra, Adv. versus DEPUTY COMMISSIONER OF INCOME TAX CIRCLE 4(2)NEW DELHI..... RespondentThrough:Mr.SanjayKumar&Ms.Easha, Advs. CORAM:HON'BLE MR. JUSTICE YASHWANT VARMAHON'BLE MR. JUSTICE PURUSHAINDRA KUMARKAURAV O R D E R%12.01.2024 CM APPL. 2211/2024 (Exemption) 1.Allowed, subject to all just exceptions. 2.Application is disposed of.W.P.(C) 499/2024 & CM APPL. 2210/2024W.P.(C) 499/2024 & CM APPL. 2210/2024 3.The writ petitioner assails the garnishee notices dated 09January 2024 which has been issued by the respondent under Section226 of the Income Tax Act, 1961 [“Act”] and pursuant to which thepetitioner’s bank accounts maintained with the Standard CharteredBank and Citi Bank have come to be freezed. 4.Mr. Vohra, learned senior counsel for the appellant has drawnour attention to the break-up of the total outstanding demand andwhich is set out in a tabular form hereunder: AYSectionOutstanding 5.Undisputedly, the writ petitioner has been unsuccessful up tothe stage of the Commissioner of Income Tax (Appeals) [“CIT(A)”]insofar as the original order of assessment is concerned, with the CIT(A) having dismissed its appeals on 23 October 2019. Subsequently,penalty orders came to be drawn by the Assessing Officer on 05January 2022 in terms of Section 271(1)(c) of the Act. The aforesaidorder has also come to be affirmed by the CIT (A) vide an order dated23 March 2023. 6.We are however informed that appeals have been preferred bythe petitioner against the aforesaid orders and are presently pendingbefore the Income Tax Appellate Tribunal [“ITAT”]. The first ofthose appeals was instituted as far back as 20 December 2019. 7.The respondent appears to have proceeded further to effectrecoveries of the outstanding demand consequent to the dismissal ofthe appeals by the CIT(A) and being constrained by the limitedcontours of Section 220(6) of the Act. 8.Mr. Vohra further apprises the Court that in furtherance of thedemand which is outstanding, the respondent has also taken over ademand draft of a sum of Rs. 98,85,00,196/-. According to learnedsenior counsel, the aforesaid demand draft is yet to be encashed by theDepartment. 9.Mr. Kumar, learned counsel for the respondent, however, oninstructions has apprised us that the said demand draft has alreadybeen deposited for encashment. 10.It is in the aforesaid backdrop that a prayer is made that pendingthe right of the petitioner to take emergent steps before the ITAT topress its applications for stay, the respondent may be restrained fromencashing the demand draft which is held, subject to the petitionerensuring that its bank accounts which form the subject matter ofseizure maintain a credit balance of Rs. 79,81,80,766/- [i.e. Rs.178,66,80,962/- - Rs. 98,85,00,196/-]. 11.In view of the aforesaid, we dispose of the writ petition with thefollowing directions: a.We accord liberty to the petitioner to approach the ITATforthwithandtakeappropriateordersforexpeditiousconsideration and disposal of the stay applications in thepending appeals. We further request the ITAT to take up thestay applications and dispose them of with due expedition.forthwithandtakeappropriateordersforexpeditiousconsideration and disposal of the stay applications in thepending appeals. We further request the ITAT to take up thestay applications and dispose them of with due expedition. 11.In view of the aforesaid, we dispose of the writ petition with thefollowing directions: a.We accord liberty to the petitioner to approach the ITATforthwithandtakeappropriateordersforexpeditiousconsideration and disposal of the stay applications in thepending appeals. We further request the ITAT to take up thestay applications and dispose them of with due expedition.forthwithandtakeappropriateordersforexpeditiousconsideration and disposal of the stay applications in thepending appeals. We further request the ITAT to take up thestay applications and dispose them of with due expedition. b.For a period of two weeks, we direct the respondent not toencash the aforenoted demand draft which has been recovered,if not already presented for encashment.In case the demanddraft has already been submitted, the proceeds thereof shallabide by the orders that the ITAT may pass on the stayapplications moved by the petitioner.encash the aforenoted demand draft which has been recovered,if not already presented for encashment.In case the demanddraft has already been submitted, the proceeds thereof shallabide by the orders that the ITAT may pass on the stayapplications moved by the petitioner. c.The encashment of the demand draft as well as the further rightsof the respondent to effect recoveries from the petitioner shallabide by any direction that the ITAT may pass on the stayapplications.of the respondent to effect recoveries from the petitioner shallabide by any direction that the ITAT may pass on the stayapplications. d.Till such time as the ITAT disposes of the stay applications, the petitioner shall ensure that the concerned bank accountsmaintain a credit balance of Rs. 79,81,80,766/- at all times.e.Subject to compliance with the above and pending furtherorders to be passed by the ITAT, the impugned garnisheenotices dated 09 January 2024 shall remain stayed.12.Dasti under the signatures of the Court Master. YASHWANT VARMA, J. PURUSHAINDRA KUMAR KAURAV, J.JANUARY 12, 2024/kk