Wp/3552/2022 Of M/S.magick Woods Exports Private Limited v. The Assistant Commissioner Of Income Tax

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 24.02.2022 CORAM : THE HONOURABLE MR.JUSTICE R.SURESH KUMARW.P.NO.3552 OF 2022ANDW.M.P.NOS.3681 & 3682 OF 2022 M/s. Magic Woods Exports Private Limited,Represented by its Authorized Signatory, T.Prabha,A-8, Industrial Complex, Maraimalai Nagar,Kancheepuram, Chennai, Tamil Nadu – 603 209.... Petitioner .Vs. 1. The Assistant Commissioner of Income-Tax, Corporate Circle 4(1), Aayakar Bhawan, 4[th] Floor Main Building, No.121, Mahatma Gandhi Road, Nungambakkam, Chennai - 600 034. 2. The Central Processing Centre, Post Bag No.2, Electronic City Post Office, Bangalore – 560 500.3. The Principal Commissioner of Income Tax, Chennai – 4, No.121, Mahatma Gandhi High Road, Chennai – 600 034.4. The State Bank of India, 86, Rajaji Salai, Chennai – 600 001. ... Respondents PRAYER:- Writ Petition filed under Article 226 of the Constitution ofIndia for issuance of a Writ of Certiorarified Mandamus, callingfor the records comprised in notice under Section 226(3) dated https://hcservices.ecourts.gov.in/hcservices/ 08.02.2022 in DIN and Notice No.ITBA/RCV/226(3)_1/2021-22/1039510203(1) issued by the First respondent to the fourthrespondent, quash the same, direct the first, second and thirdrespondents to consider the pending applications forrectification of orders, stay of demand after providing thecopies of orders which were not served on the petitioner andgiving the petitioner adequate opportunity of being heard andnot to proceed with the recovery pending disposal of the saidapplications before them. O R D E R The prayer sought for herein is for a Writ of CertiorarifiedMandamus, to quash the proceedings in notice under Section 226(3) dated 08.02.2022 in DIN and Notice No.ITBA/RCV/226(3)_1/2021-22/1039510203(1) issued by the First respondent to thefourth respondent and to direct the first, second and thirdrespondents to consider the pending applications forrectification of orders, stay of demand after providing thecopies of orders which were not served on the petitioner andgiving the petitioner adequate opportunity of being heard andnot to proceed with the recovery pending disposal of the saidapplications before them. 2. Though mainly the order of provisional attachment made ofthe Bank Account of the petitioner/assessee under Section 226(3)of the Income Tax Act, 1961,(in short, 'the Act') dated08.02.2022 is under challenge, the consequential prayer soughtfor by the petitioner is that, the application submitted by thepetitioner/assessee for rectification as well as the stay of thedemand pending before the respondent/Assessing Authority may bedirected to be disposed of on merits at an early date. 3. Today when the matter is taken up for hearing, Mrs.HemaMuralikrishnan, learned Senior Standing Counsel appearing forthe respondents 1 to 3 submitted that, the attachment of theBank account of the petitioner made under Section 226(3) of theAct by order dated 08.02.2022 has been lifted with immediate https://hcservices.ecourts.gov.in/hcservices/ effect by order dated 23.02.2022 and in this regard, the copy ofthe said order also has been produced before this Court by thelearned Senior Standing Counsel and the content of the same isextracted hereunder: “2. The bank account in the case of M/s.Magick Woods Exports Private Limited was attachedvide notice under Section 226(3) of the Income TaxAct, 1961 dated 08.02.2022. The attachment imposedvide cited reference on the assessee's CurrentA/C.No.30118346320 is hereby lifted with immediateeffect. Yours faithfully, sd/- (Sita Krishnamoorthy, I.R.S) Deputy Commissioner of Income-Tax Corporate Circle – 4(1), Chennai.” https://hcservices.ecourts.gov.in/hcservices/ effect by order dated 23.02.2022 and in this regard, the copy ofthe said order also has been produced before this Court by thelearned Senior Standing Counsel and the content of the same isextracted hereunder: “2. The bank account in the case of M/s.Magick Woods Exports Private Limited was attachedvide notice under Section 226(3) of the Income TaxAct, 1961 dated 08.02.2022. The attachment imposedvide cited reference on the assessee's CurrentA/C.No.30118346320 is hereby lifted with immediateeffect. Yours faithfully, sd/- (Sita Krishnamoorthy, I.R.S) Deputy Commissioner of Income-Tax Corporate Circle – 4(1), Chennai.” 4. By relying upon this communication, learned SeniorStanding Counsel would submit that, since the very attachmentitself is lifted by order dated 23.02.2022, nothing survives inthis writ petition, therefore, recording the same, it may beclosed. 5. However, Mr.N.V.Balaji, learned counsel appearing for thepetitioner would submit that, insofar as the consequentialprayer of mandamus to pass orders on the rectification as wellas the stay of the demand application submitted and pendingbefore the Assessing Officer is concerned, such kind ofdirection now can be given, for which, there could be noimpediment, in view of the attachment being lifted now, hecontended. 6. Considering the said submission made by both sides, thisCourt is inclined to pass the following directions: ●That in view of the order passed by the first respondentdated 23.02.2022, where the attachment order dated08.02.2022 since has been lifted, the certiorari portionof the prayer sought for herein has become infructuous,therefore, recording the same, that portion has beendismissed as infructuous. ●In respect of mandamus portion is concerned, there shallbe a direction to the respondents 1 to 3 to consider andpass orders on the pending application i.e.,rectification application as well as the application forstay of demand filed and it is pending before theAssessing Officer at an early date, on merits and in accordance with law, after giving a reasonableopportunity of being heard to the petitioner, preferablywithin a period of six weeks from the date of receipt ofa copy of this order . 7. With this direction, this writ petition stands disposedof. No costs. Connected miscellaneous petitions are closed. Sd/-Assistant Registrar(CS V)//True Copy// Sub Assistant Registrar mp/sp To 1. The Assistant Commissioner of Income-Tax, Corporate Circle 4(1), Aayakar Bhawan, 4[th] Floor Main Building, No.121, Mahatma Gandhi Road, Nungambakkam, Chennai - 600 034.2. The Central Processing Centre, Post Bag No.2, Electronic City Post Office, Bangalore – 560 500. 3. The Principal Commissioner of Income Tax, Chennai – 4, No.121, Mahatma Gandhi High Road, Chennai – 600 034. 4. The State Bank of India, 86, Rajaji Salai, Chennai – 600 001. +1cc to Mrs.Hema Muralikrishanan, Advocate, S.R.No.12555+1cc to Mr.N.V.Balaji, Advocate, S.R.No.12865 W.P.NO.3552 OF 2022 RR(CO)PBS/17/03/2022