M/S.bharani Pictures Private Limited v. Assistant Commissioner Of Income Tax,Non Corporate Circle – 20(1)

IN THE HIGH COURT OF JUDICATURE AT MADRAS Dated : 28.04.2018Coram The Hon'ble Mr.Justice T.S.Sivagnanam Writ Petition Nos. 10837 & 10838 of 2018 andW.M.P.Nos.12781 to 12783 of 2018 M/s.Bharani Pictures Private Limited,No.57, |Arcot |Road, |Saligramam,Chennai – 600 093. ..Petitioner in both W.Ps. Vs. Assistant Commissioner of Income Tax,Non Corporate Circle – 20(1)121, Mahatma Gandhi Road,Chennai – 600 034. ..Respondent in both W.Ps. Prayer in both W.Ps. Writ Petitions filed under Article 226 of the Constitutionof India, for issuance of Writ of Certiorarified Mandamus,calling for the records of the respondent comprised in itscommunication, dated 21.03.2018 PAN: /ACIT/NCC-20(i)CHN, addressed to the petitioner's banker u/s 226(3) of theIncome Tax Act, 1961 and to quash the same as illegal, unjustand ultra vires the Income Tax Act, 1961 and consequently, todirect the respondent to defreeze the petitioner's the BankAccount bearing No.003802000003701 with Indian Overseas Bank,Kodambakkam, Chennai and the Bank Account, bearingNos.50200001184080 with HDFC Bank Ashok Nagar Branch, Chennairespectively. For Petitioner in both W.Ps. : Mr.Suhrith ParthasarathyFor Respondent in both W.Ps. : Mr.J.Narayanasamy Standing Counsel COMMON ORDER Heard Mr.Suhrith Parthasarathy, the learnedcounsel appearing for the petitioner and Mr.J.Narayanasamy, thelearned Standing Counsel for the respondent. 2. The petitioner has filed these Writ Petitions,challenging the notices issued by the respondent under Section226(3) of the Income Tax Act, 1961 (the Act, for brevity),attaching the petitioner's bank accounts for recovery of taxalleged to be payable by the petitioner for the assessment years2004-05, 2005-06, 2009-10, 2012-13 and 2015-16, being the totalsum of Rs.2896067/-. 3.The petitioner's case is that, the impugned attachmentnotices are wholly unreasonable and perverse, as there are notax payable by petitioner in respect of aforementioned fiveassessment years. Therefore, it is submitted that, therespondent could not have invoked the power under Section 226(3)of the Act. 4.When the Writ Petitions came up for hearing on26.04.2018, the Court directed the learned Standing Counsel forthe Revenue to get instructions from the respondent as regardsthe contention advanced by the petitioner. In fact, during thecourse of hearing on 26.04.2018, the learned counsel for thepetitioner had demonstrated before this Court that the demandamount in the impugned notices is palpably erroneous. 5.Today, when the case is heard, the learned StandingCounsel for the Revenue orally submits that, there are certaindiscrepancies in the impugned notices and if a representation isgiven by the petitioner to the respondent, the same will beconsidered by the respondent and appropriate corrective measureswill be taken by the respondent. However, the respondent has nottaken a definite stand as regards the contention advanced bythe petitioner, though partially admitting that there arediscrepancies. However, for the present, this Court does notpropose to go into the controversy, as it would suffice to issuedirection for a representation to be placed by the assesseebefore the respondent. 6.In the light of the above, the impugned notices shallremain stayed till a decision is taken by the respondent on therepresentation to be filed by the petitioner/assessee. Thepetitioner is directed to file a comprehensive representation,clearly setting out their stand that there are absolutely noarrears payable by them for the aforementioned five assessmentyears within a period of 15 days from the date of receipt of a https://hcservices.ecourts.gov.in/hcservices/ 6.In the light of the above, the impugned notices shallremain stayed till a decision is taken by the respondent on therepresentation to be filed by the petitioner/assessee. Thepetitioner is directed to file a comprehensive representation,clearly setting out their stand that there are absolutely noarrears payable by them for the aforementioned five assessmentyears within a period of 15 days from the date of receipt of a https://hcservices.ecourts.gov.in/hcservices/ copy of this order. On such representation being placed, therespondent shall afford an opportunity of hearing to theAuthorized Representative of the petitioner and pass a speakingorder on merits in accordance with law. As observed earlier,the impugned notices shall remain stayed till such orders arepassed by the respondent in terms of the above direction. 7. With the above direction, both the Writ Petitionsare disposed of. No costs. Consequently, connectedMiscellaneous Petitions are closed. Sd/- Assistant Registrar(CO) //True Copy// Sub Assistant Registrar ggi/sdTo The Assistant Commissioner of Income Tax,Non Corporate Circle – 20(1)121, Mahatma Gandhi Road,Chennai – 600 034. +2cc to Mr.J.NARAYANASWAMY, Advocate, S.R.No.32328+2cc to Mr.ARUNKARTHIK MOHAN, Advocate, S.R.No.34496(04/06/2018) Writ Petition Nos. 10837 & 10838 of 2018 SSI(CO)TR(18/05/2018)