Wp/14023/2019 Of 6Th Sense Infrastructure Pvt.ltd. Rep.by v. The Director General Of Income Tax(Inv)

IN THE HIGH COURT OF JUDICATURE AT MADRAS Dated: 13.09.2019 CORAM THE HONOURNABLE MR.JUSTICE K.RAVICHANDRABAABU W.P.No.14023 of 2019and W.M.P.Nos.14078 & 14080 of 2019 6th Sense Infrastructure Pvt.Ltd., represented by its Director, N.NandakumarNo.6, Dr.TV Naidu Road, Chetpet,Chennai - 600 031. ...Petitioner 1. The Director General of Income Tax(INV), New No.46, Old No.108, Nungambakkam High Road, Chennai - 600 034. 2. The Principal Director of Income tax (INV) The Director General of Income Tax(INV), New No.46, Old No.108, Nungambakkam High Road, Chennai - 600 034. 3. The Additional Deputy Director of Income Tax (INV) Unit-4, New No.46, Old No.108, Nungambakkam High Road, Chennai - 600 034. Unit-4, New No.46, Old No.108, Nungambakkam High Road, Chennai - 600 034. 4. The Deputy Director of Income Tax (INV) Unit-4(1), Investigation Wing (Room No.115, 1st Floor) New No.46, Old No.108, Nungambakkam High Road, Chennai - 600 034. 5. The Deputy Commissioner of Income Tax, Central Circle-2(3), Room No.126, Investigation Building, 46, Mahatama Gandhi Road, Nungambakkam, Chennai - 600 034. (5th respondent impleaded as per order of this Court in WMP.No.22997/2019 dated 13.09.2019) .. Respondents Writ Petition filed under Article 226 of the Constitution ofIndia to issue a Writ of Certiorarified Mandamus to call for therecords of the respondents culminating in the order of the 4threspondent bearing No.F.No.DDIT/U-4(1)/SCL-BTELLP/132(9B)/2017-18/1 dated 26.02.2018 and quash the same as illegal, arbitrary. For Petitioner : Mr.L.Maithili For Respondents: Mr.A.P.Srinivas Senior Standing Counsel for Income Tax Heard both sides. 2. This Writ Petition is filed challenging the order of the4th respondent dated 26.02.2018 and for a direction to therespondents to return the seized documents. 3. The order impugned is warrant for attachment ofproperties under section 132(9B) of the Income Tax Act, 1961. 4. The case of the petitioner in short is as follows: The State Industries Promotion Corporation of Tamil NaduLtd. (SIPCOT) allotted 11.12 acres of land situated at New PlotNo.H3, Old Plot No.D1-D5, D25, D26 comprised in S.F.No.76 Partof Egattur Village, Kanchipuram District and given the same on99 years lease under Lease Deed dated 11.05.2005 for the purposeof Software Development, Health Care Record Management andKnowledge Process Outsourcing. On 02.08.2005, the petitionertook possession of the premises and constructed a buildingcomplex. During the year 2016, the petitioner Company was unableto commercially exploit the subject property and a group ofshareholders of the petitioner Company belonging to the familyof one Dinesh Chand Surana wanted to exist the business andoffered their shares to the remaining shareholders. He tooktemporary custody of the Original Lease Deed, ShareCertificates and other documents to find suitable buyers fortotal exit by all shareholders. The petitioner received summondated 13.02.2018 under section 131 of Income Tax Act, 1961 toappear in person before the 4th respondent. On 22.02.2018, thepetitioner appeared before the 4th respondent wherein thepetitioner was informed that the following documents were seizedfrom the premises of third party. a. Lease deed in Original vide document number 4729 dated11.5.2005 registered with SRO, Thiruporur; b. Allotment letter dated 16.2.2004 issued by SIPCOT infavour of 6th Sense Infrastructure Pvt.Ltd; c. Possession handing over document dated 2.8.2005 executedby SIPCOT in favour of 6th Sense Infrastructure Pvt.Ltd. d. Original Share Certificates issued by the Company infavour of its sharesholders; e. Undated, incomplete, signed MOU. a. Lease deed in Original vide document number 4729 dated11.5.2005 registered with SRO, Thiruporur; b. Allotment letter dated 16.2.2004 issued by SIPCOT infavour of 6th Sense Infrastructure Pvt.Ltd; c. Possession handing over document dated 2.8.2005 executedby SIPCOT in favour of 6th Sense Infrastructure Pvt.Ltd. d. Original Share Certificates issued by the Company infavour of its sharesholders; e. Undated, incomplete, signed MOU. The fourth respondent directed the petitioner to produce thedetails of the shareholders of the Company. The very next day,the petitioner handed over those details. However, the impugnedorder of attachment dated 26.02.2018 was issued by the 4threspondent without putting the petitioner on notice. Thepetitioner through letter dated 15.04.2019 requested to revokethe attachment and return the seized documents. Since the saidrequest was not considered, the present writ petition is filed. 5. The 4th respondent filed a counter affidavit. 6. Though several facts and circumstances are narrated inthe affidavit filed in support of the writ petition which hasculminated into issuance of warrant for attachment ofproperties, I am not inclined to go into any of thosecontentions and express any view for the simple reason that thevery impugned order of attachment, as admitted by the 4threspondent in his counter affidavit, ceased to have effect afterthe period of six months which was on 25.08.2018. In otherwords, as per section 132(9C) of the said Act, the provisionalattachment made under Section 132(9B) of the said Actautomatically ceased to have effect after the expiry of a periodof six months from the date of the order referred to in sub-section 9B. Therefore, it is admitted by the 4th respondent thatthe order of attachment, impugned in this writ petition, ceasedto have effect after 25.08.2018. When such being the factualand legal position, I am of the view that the first limb of theprayer in this writ petition has become infructuous. 7. While coming to the other limb of the prayer, namely forreturn of the seized documents, it is the case of therespondents that those documents were not seized from the handsof the petitioner and on the other hand, they were seized duringthe course of search in the case of one V.K.Sasikala and othersand therefore, the petitioner is not entitled to seek return ofthose documents. It is also contended by the learned SeniorStanding Counsel for the respondents that the assessmentproceedings is still going on and therefore, the prayer soughtfor in this writ petition for return of the documents cannot beconsidered. 8. It is not the case of the petitioner that the documentssought to be returned have been recovered from the premises ofthe petitioner and on the other hand, it is the case of theRevenue that they were recovered from the premises of one V.K.Sasikala and others during search operation. Therefore, thisCourt is of the view that the petitioner is not entitled to seekfor return of those documents which are not seized from itspremises, more particularly, when it is stated that theassessment proceedings are still going on and not completed. 9. Considering the above stated facts and circumstances,this Court is of the view that the petitioner is also notentitled to the other limb of the prayer made in this writpetition. Accordingly, the Writ Petition is dismissed on thereason that the period of the impugned order of attachment hasalready expired on 25.08.2018 and that the petitioner is notentitled for return all the seized documents when the assessmentproceedings is still going on. No costs. Consequently,connected miscellaneous petition are closed. Sd/- Assistant Registrar //True Copy// Sub Assistant Registrar vsi To 9. Considering the above stated facts and circumstances,this Court is of the view that the petitioner is also notentitled to the other limb of the prayer made in this writpetition. Accordingly, the Writ Petition is dismissed on thereason that the period of the impugned order of attachment hasalready expired on 25.08.2018 and that the petitioner is notentitled for return all the seized documents when the assessmentproceedings is still going on. No costs. Consequently,connected miscellaneous petition are closed. Sd/- Assistant Registrar //True Copy// Sub Assistant Registrar vsi To 1. The Director General of Income Tax(INV), New No.46, Old No.108, Nungambakkam High Road, Chennai - 600 034. New No.46, Old No.108, Nungambakkam High Road, Chennai - 600 034. 2. The Principal Director of Income tax (INV) New No.46, Old No.108, Nungambakkam High Road, Chennai - 600 034. New No.46, Old No.108, Nungambakkam High Road, Chennai - 600 034. 3. The Additional Deputy Director of Income Tax (INV) Unit-4, New No.46, Old No.108, Nungambakkam High Road, Chennai - 600 034. Unit-4, New No.46, Old No.108, Nungambakkam High Road, Chennai - 600 034. 4. The Deputy Director of Income Tax (INV) Unit-4(1), Investigation Wing (Room No.115, 1st Floor) New No.46, Old No.108, Nungambakkam High Road, Chennai - 600 034. 5. The Deputy Commissioner of Income Tax, Central Circle-2(3), Room No.126, Investigation Building, 46, Mahatama Gandhi Road, Nungambakkam, Chennai - 600 034. +1cc to M/s.L.Maithili Associates, Advocate Sr.79548+1cc to Mr.A.P.Srinivas, Advocate Sr.78902 W.P.No.14023 of 2019 vd[co]srg 30/09/2019