Shree Jee Bhai Nathu Charitable Trust& Anr.… v. The Assistant Commissioner Of Income Tax-14(3)Mumbai & Anr

IN THE HIGH COURT OF JUDICATURE AT BOMBAYORDINARY ORIGINAL CIVIL JURISDICTION WRIT PETITION NO. 291 OF 2014 Shree Jee Bhai Nathu Charitable Trust& anr.… Petitioners v/s The Assistant Commissioner of Income Tax-14(3)Mumbai & anr. … Respondents Mr.Mukesh Chedda along with Omkar Kulkarni i/by Reena Salunkhe for the petitioners. Mr.Suresh Kumar for the respondents. CORAM: M.S. SANKLECHA & N.M.JAMDAR, JJ. DATED : 1 SEPTEMBER 2014 P.C.: The petitioner Trust has filed this petition originally challenging the provisional attachment of the petitioner's bank account under Section 281-B of the Income Tax Act, 1961 (the Act). Thereafter, during the pendency of the present petition the Assessing Officer has passed an assessment order dated 19 December 2013 in respect of assessment year 2012-13. The petition was amended to also challenge the Assessment Order dated 19 December 2013. 2. The petitioner's grievance is that the issue which arises for consideration is the fair market value of the land sold by the petitioner. bsb 2 WP291.14.doc As the stamp duty valuation was higher than the consideration received on sale, the same has been referred to the Valuation Officer under Section 50-C of the Act read with Section 55A of the Act. However even before the receipt of the report of the Valuation Officer the assessment by order dated 19 December 2013 has been completed. In the meantime, we are informed that the petitioners have already filed an appeal from the order of assessment dated 19 December 2013 to the Commissioner of Income Tax (Appeals). The appeal is awaiting disposal by the Commissioner of Income Tax (Appeals). The grievance of the petitioner about the Assessment Order dated 19 December 2013 can be urged before the Commissioner of Income Tax (Appeals). Therefore, we see no reason to admit this petition. 3.However the petitioner submits that in case they are relegated to pursue the alternative remedy, the revenue would adopt coercive proceedings for recovery. We find that in the peculiar facts of this case that the attachment of the petitioner's bank Account does secure the revenue. However till such time as the Commissioner of Income Tax (Appeals) decides the appeal or the Valuation Officer submits his report, the petitioner should be able to enjoy / use the interest on the bank Accounts which are attached. Therefore this Court by order dated 18 January 2014 while directing the continuation of the attachment of the petitioner's Bank accounts had permitted the petitioner to withdraw the interest amount accruing to the petitioner's in its bank account which was attached. Besides, the Court directed that the amounts lying in the Saving Account be converted into Fixed Deposit as it would receive higher returns. We are informed that the aforesaid arrangement has been worked bsb 3 WP291.14.doc out and the petitioners are receiving interest on their fixed deposits which are attached. The above order passed on 18 January 2014 would continue to operate till such time as the Commissioner of Income Tax (Appeals) decides the appeal arising from the assessment order dated 19 December 2013 of the Assessing Officer and/or the Assessing Officer passes an order under Section 154 of the Act rectifying the Assessment Order dated 19 December 2013 on receipt of the report of the Valuation Officer under Section 50-C read with 55A of the Act is received by the petitioners whichever is earlier. 4.The petition is disposed of with the above directions. No order as to costs. (N.M.JAMDAR, J.) (M.S. SANKLECHA, J.)