Wp/6482/2005 Of M/S Sri Krishna And Co v. The Deputy Commissioner Of Income Tax

IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) FRIDAY, THE FIFTEENTH DAY OF APRILTWO THOUSAND AND FIVE PRESENT THE HON'BLE MR JUSTICE B. SUDERSHAN REDDY and THE HON'BLE MR JUSTICE C.V.RAMULU WRIT PETITION NO : 6482 of 2005 Between: M/s Sri Krishna & Co., Rep. by its Managing Partner Mr. R. Sudharsan, S/o C. Raghavachari, aged 52 years, D.No. 6-1-130/2, Padmarao Nagar, Secunderabad - 500 061. ..... PETITIONER AND 1 The Deputy Commissioner of Income Tax, Circle-I (I), CR Building, M.G. Road, Vijayawada - 520 002. 2 The Branch Manager, ICICI Bank, Swarnambigai Plaza, Omalur Main Road, Near Bus Stand, Salem, Tamilnadu. .....RESPONDENT(S) Petition under Article 226 of the constitution of India praying that in thecircumstances stated in the Affidavit filed herein the High Court will be pleased toissue an appropriate order or direction more particularly one in nature of Writ ofmandamus declaring that the action of First Respondent in collecting the amountdue and payable by the M/s Sri Krishna & Co. (New Firm) from the accountPetitioner lying with the Second Respondent as illegal, arbitrary, without jurisdictionand in violation of principles of natural justice and consequently direct therespondents 1 and 2 herein to refund the amount of Rs.4,04,535/- with interest andpass such other order or orders as this Hon'ble Court may deem fit and proper in thecircumstances of the case. Counsel for the Petitioner:MR.P.R.PRASAD The Court at the admission stage made the following ORDER: (per BRSR, J) It is evident from the material papers filed by the petitioner-company that it hadalready made a representation dated 28-02-2005 to the 1[st] respondent-Deputy Commissioner of Income Tax, Circle-1 (I),Vijayawada with reference to the garnishee notice dated 18-02-2005 issued underSection 226(3) of the Income Tax Act, 1961 (for short “the Act”). The sum andsubstance of the objections raised by the petitioner as well as the contentions raisedin this writ petition are that the petitioner-company is not liable to pay any amountswhatsoever to the Department. It is stated that M/s. Sri Krishna & Co. (new firm) hasbeen dissolved with effect from 01.04.1988 on take over of its business as a goingconcern by M/s. CR Steel & Tubes Private Limited on closing hours of business on31-03-1988. The constitution of the firm consisted of HUFs as partners whereas theconstitution of M/s. Sri Krishna and Company (the petitioner in this case) is that ofindividuals. Though the petitioner-company is aware of the notice dated 18-02-2005 issued under Section 226 of the Act, the same is not filed before us andit is stated that it is not served upon the petitioner-company but it came to knowabout the same only through the bank when the said amounts were deducted by the bank from out of the account held by the petitioner in compliance with the noticedated 18-02-2005. It is not possible to express any opinion whatsoever on the question of liability of thepetitioner in this writ petition. Suffice it to direct the 1[st] respondent-DeputyCommissioner of Income Tax, Circle-I (1), Vijayawada, to dispose of therepresentation dated 28-02-2005 filed by the petitioner forthwith, preferably, within a period twoweeks by passing a speaking order which shall be communicated to the petitioner inorder to enable it to avail the remedies, if any, available in law if such an occasionarises. It is needless to direct the 1[st] respondent to furnish a copy of the garnisheeorder also to the petitioner. The writ petition shall accordingly stand disposed of. 15[th] APRIL, 2005. __________________________ (B.SUDERSHAN REDDY, J) __________________(C.V.RAMULU, J) Note: furnish copy by 19-04-2005. B/okvni/ks To 1 The Deputy Commissioner of Income Tax, Circle-I (I), CR Building, M.G. Road, Vijayawada - 520 002. dated 28-02-2005 filed by the petitioner forthwith, preferably, within a period twoweeks by passing a speaking order which shall be communicated to the petitioner inorder to enable it to avail the remedies, if any, available in law if such an occasionarises. It is needless to direct the 1[st] respondent to furnish a copy of the garnisheeorder also to the petitioner. The writ petition shall accordingly stand disposed of. 15[th] APRIL, 2005. __________________________ (B.SUDERSHAN REDDY, J) __________________(C.V.RAMULU, J) Note: furnish copy by 19-04-2005. B/okvni/ks To 1 The Deputy Commissioner of Income Tax, Circle-I (I), CR Building, M.G. Road, Vijayawada - 520 002. 2 The Branch Manager, ICICI Bank, Swarnambigai Plaza, Omalur Main Road, Near Bus Stand, Salem, Tamilnadu. Omalur Main Road, Near Bus Stand, Salem, Tamilnadu. 3 Two CD copies.