Idfc Infrastructure Fund v. Baijnath Singh, Deputy Commissioner Of Income Tax-19(3) And Others

IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION WRIT PETITION (LODG.) NO.949 OF 2013 IDFC Infrastructure Fund ..Petitioner. versusBaijnath Singh,Deputy Commissioner of Income Tax-19(3)and others ..Respondents. ..... Mr. S.E. Dastur, Senior Advocate with Mr. Nitesh Joshi i/b Mr. Atul K. Jasani for the Petitioner.Mr. Suresh Kumar for the Respondents. ..... CORAM : DR.D.Y.CHANDRACHUD, ANDA.A. SAYED, JJ. 2 May 2013. P.C. : The challenge in these proceedings is to the legality of an order dated 25 March 2013 passed by the First Respondent under Section 281-B of the Income Tax Act 1961. The order under Section 281-B seeks to levy a provisional attachment on the demat account. The demat account stands in the name of IDBI Trusteeship Services Limited A/c IDFC Infrastructure India Development Fund. 2.During the course of the hearing, learned senior counsel appearing on behalf of the assessee has stated that pending the disposal of the appeal before the CIT(A), the following statement would govern : “The Petitioner would not dispose of such number of shares held by it in GMR Infrastructure Ltd. as is equal to the value of Rs.35 Crores or if the same are sold, the Petitioner will retain Rs.35 Crores out of the sale proceeds in a separate account for meeting any tax liability which may become payable.”GMR Infrastructure Ltd. as is equal to the value of Rs.35 Crores or if the same are sold, the Petitioner will retain Rs.35 Crores out of the sale proceeds in a separate account for meeting any tax liability which may become payable.” 3.Counsel appearing on behalf of the Respondents states on the instructions of the DCIT, 19(3), Baijnath Singh that the aforesaid statement which has been made on behalf of the assessee would sufficiently safeguard the revenue and that in view of the aforesaid statement the attachment under Section 281-B would stand lifted. Learned senior counsel appearing on behalf of the Petitioner has further stated that the DCIT, 19(3) shall be intimated of the separate account in which the sale proceeds of a value of Rs.35 Crores shall be deposited, in the event that the shares are sold in pursuance of the aforesaid statement. The hearing of the appeal before the CIT(A) is expedited and an endeavour shall be made to dispose of the appeal within a period of four months from today. The Petition is accordingly disposed of since no other point is pressed. (Dr. D.Y.Chandrachud, J.) (A.A. Sayed, J.)