Thiruvanmiyur, Chennai - 600 041 v. The Commissioner Of Income Tax, Chennai. Chennai

IN THE HIGH COURT OF JUDICATURE AT MADRASDATED : 11.11.2020 M/s. Akshya Infrastructure Private Limited,Represented by its Director,Mr. Chintamani Padhi,Reg. Office at 414, Bharathi Street,Puducherry – 605 001Corporate Office atSai Subodaya Apartment,57/2B, East Coast Road,Thiruvanmiyur, Chennai - 600 041. ...Petitioner -vs- 1. The Commissioner of Income Tax, Chennai. 2. The Deputy Commissioner of Income Tax, Puducherry Circule, D.P. Thottam, Muthialpet, Puducherry - 605 003. 3. The Branch Manager, Axis Bank Limited, Virugambakkam Branch, 69, Arcot Road, Virugambakkam, Chennai - 92. ...Respondents Prayer:- Writ Petition filed under Article 226 of theConstitution of India praying to issue a Writ of CertiorarifiedMandamus to call for the records of the Second Respondent toquash the impugned notice in PAN. dated 26.06.2015u/s. 226 (3) of the Income Tax Act, 1961 and consequently https://hcservices.ecourts.gov.in/hcservices/ directed to refund of the money recovered from the ThirdRespondent bank account forthwith. For Petitioner : Mr. R. Sivaraman For Respondent :Mr. A.P. Srinivas (for R1 & R2)Standing CounselMr. Noyal James for Mr. V.V. Sivakumar (for R3) M/s. Akshya Infrastructure Private Limited,Represented by its Director,Mr. Chintamani Padhi,Reg. Office at 414, Bharathi Street,Puducherry – 605 001Corporate Office atSai Subodaya Apartment,57/2B, East Coast Road, Thiruvanmiyur, Chennai - 600 041. ...Petitioner -vs- 1. The Commissioner of Income Tax, Chennai. Chennai. 2. The Deputy Commissioner of Income Tax, Puducherry Circule, D.P. Thottam, Muthialpet, Puducherry - 605 003. Puducherry Circule, D.P. Thottam, Muthialpet, Puducherry - 605 003. 3. The Branch Manager, Axis Bank Limited, Virugambakkam Branch, 69, Arcot Road, Virugambakkam, Chennai - 92. ...Respondents Prayer:- Writ Petition filed under Article 226 of theConstitution of India praying to issue a Writ of Certiorari,calling for the records relating to the communication of theSecond Respondent issued to the Petitioner dated 07.09.2015 andquash the same in so far it blocks the A/c No. 911020054279565,909020041454231, 910020018212163 and 914040040967350 of the Petitioner held in the Third Respondent Bank in respect of PAN. . For Petitioner : Mr. R. SivaramanFor Respondent :Mr. A.P. Srinivas (for R1 & R2)Standing CounselMr. Noyal James for Mr. V.V. Sivakumar (for R3) W.P. No. 6293 of 2016:- M/s. Axis Bank Limited,Represented by its Branch Head and Deputy Vice-President, Ms. N. Anitha,No. 2/8, I Cross Street,Lambert Nagar, Alwarthirunagar,Virugambakkam, Chennai - 600 092. ...Petitioner -vs- 1. The Deputy Commissioner of Income Tax, Puducherry Circle, - I, Pondicherry, D.P Thottam, Muthialpet, Pondicherry - 605 003. Puducherry Circle, - I, Pondicherry, D.P Thottam, Muthialpet, Pondicherry - 605 003. 2. M/s. Akshya Infrastructure Private Limited, First Floor, Sai Subhodaya Apartments, No. 57/2B, East Coast Road, Thiruvanmiyur, Chennai - 600 041. First Floor, Sai Subhodaya Apartments, No. 57/2B, East Coast Road, Thiruvanmiyur, Chennai - 600 041. 3. M/s. Mothilal Oswal Investment Advisors Private Limited, 2nd Floor, Palm Springs Centre, Palm Court Complex, New Link Road, Mumbai - 400 064. 2nd Floor, Palm Springs Centre, Palm Court Complex, New Link Road, Mumbai - 400 064. 4. Securities and Exchange Board of India, SEBI Bhavan, Plot No. C-4A, G Block, Bandra Kurla Complex, Bandra (East), Mumbai - 400 051. SEBI Bhavan, Plot No. C-4A, G Block, Bandra Kurla Complex, Bandra (East), Mumbai - 400 051. ...Respondents Prayer:- Writ Petition filed under Article 226 of theConstitution of India praying to issue a Writ of Certiorari,calling for the records of the First Respondent hereinculminating in the order dated 11.02.2016 and quash the same. 3. M/s. Mothilal Oswal Investment Advisors Private Limited, 2nd Floor, Palm Springs Centre, Palm Court Complex, New Link Road, Mumbai - 400 064. 2nd Floor, Palm Springs Centre, Palm Court Complex, New Link Road, Mumbai - 400 064. 4. Securities and Exchange Board of India, SEBI Bhavan, Plot No. C-4A, G Block, Bandra Kurla Complex, Bandra (East), Mumbai - 400 051. SEBI Bhavan, Plot No. C-4A, G Block, Bandra Kurla Complex, Bandra (East), Mumbai - 400 051. ...Respondents Prayer:- Writ Petition filed under Article 226 of theConstitution of India praying to issue a Writ of Certiorari,calling for the records of the First Respondent hereinculminating in the order dated 11.02.2016 and quash the same. C O M M O N O R D E R(through video conference) Heard Mr. R.Sivaraman, Learned Counsel for the Petitioner inW.P.Nos. 41087 and 41088 of 2015 and Second Respondent in W.P.No. 6293 of 2016, Mr. Noyal James, Learned Counsel for thePetitioner in W.P. No. 6293 of 2016 and Third Respondent in W.P.Nos. 41087 and 41088 of 2015 and Mr. A.P.Srinivas,Learned Standing Counsel appearing for the First and SecondRespondents in W.P. Nos. 41087 and 41088 of 2015 and FirstRespondent in W.P. No. 6293 of 2016 and perused the materialsplaced on record, apart from the pleadings of the parties. 2.It is borne out from the record that M/s. StylogInfrastructure Private Limited had owed income tax dues forwhich the Deputy Commissioner of Income Tax, Puducherry,demanded payment by an order dated 31.03.2015 passed underSection 143(3) of the Income Tax Act, 1961 (hereinafter referredto as the 'Act' for short). As the said Company did not makepayment of that amount, recovery measures were initiated andnotice dated 26.06.2015 under Section 226(3) of the Act wasissued to M/s. Akshaya Infrastructure Private Limited, thePetitioner in W.P. Nos. 41087 and 41088 of 2015 to pay forthwithany amount due to the said Company or held for or on account ofthat assess upto the amount of the arrears. Inasmuch as thePetitioner in W.P. Nos. 41087 and 41088 of 2015 had not compliedwith that demand made, it was treated as an assessee in defaultin terms of Section 226(3)(x) of the Act and notices dated07.09.2015 and 11.02.2016 under Section 226(3) of the Act wasissued to its banker, viz., Axis Bank Limited, the Petitioner inW.P. No. 6293 of 2016. These Writ Petitions challenge the saidOrders dated 26.06.2015, 07.09.2015 and 11.02.2016 passed by theDeputy Commissioner of Income Tax, Puducherry. 3.It is brought to notice that after the filing of the WritPetition, assessment of liability for income tax of M/s. StylogInfrastructure Private Limited has been set aside by Income TaxTribunal and the matter had been remitted for freshdetermination and thereafter, another order of assessment hasbeen passed on 06.02.2020 raising fresh demand for paymentagainst which the said Company has filed appeal before theCommissioner of Income Tax (Appeal) on 20.10.2020, which ispending. 4.In view of the subsequent events after the filing of theWrit Petition, the impugned orders raising demand for paymentfrom Petitioners based upon the assessment orders of M/s. StylogInfrastructure Private Limited cannot survive and accordingly,the same are set aside. However, this would not preclude theconcerned authority to pursue the claim for recovery based onthe fresh assessment in the manner recognized by law. 5.The Writ Petitions are disposed with the aforesaidclarifications. Consequently, the connected MiscellaneousPetitions are closed. No costs. s/d- Assistant Registrar(CS VI) True Copy Sub-Assistant Registrar vjt To 1. The Commissioner of Income Tax, Chennai. Chennai. 2. The Deputy Commissioner of Income Tax, Puducherry Circule, D.P. Thottam, Muthialpet, Puducherry - 605 003. 5.The Writ Petitions are disposed with the aforesaidclarifications. Consequently, the connected MiscellaneousPetitions are closed. No costs. s/d- Assistant Registrar(CS VI) True Copy Sub-Assistant Registrar vjt To 1. The Commissioner of Income Tax, Chennai. Chennai. 2. The Deputy Commissioner of Income Tax, Puducherry Circule, D.P. Thottam, Muthialpet, Puducherry - 605 003. 3. The Branch Manager, Axis Bank Limited, Virugambakkam Branch, 69, Arcot Road, Virugambakkam, Chennai - 92. 4. The Chairman, Securities and Exchange Board of India, SEBI Bhavan, Plot No. C-4A, G Block, Bandra Kurla Complex, Bandra (East), Mumbai - 400 051. +2cc to Mr.A.P.Srinivas, Advocate, SR.No.36825+1cc to Mr. Chethan Sagar, Advocate, SR.No.36978 W.P. Nos. 41087 and 41088 of 2015and W.P. No. 6293 of 2016 LN(CO)KKV/03/12/2020