Wps v. Deputy Commissioner Of Income Tax (Benami Prohibition) Room

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 02.07.2018CORAMTHE HON'BLE MR. JUSTICE T.S.SIVAGNANAMW.P.Nos.12848, 13160 & 13161 of 2018 &W.M.P. Nos.15473 & 15474, 15099 & 15100 of 2018 & 19457 to 19460 of 2018 Dinesh Chand Surana ... Petitioner in all WPs v. 1. Deputy Commissioner of Income Tax (Benami Prohibition) Room No.104, 1st Floor Income Tax Investigation Wing Building 108 M.G.Road, Nungambakkam Chennai - 600 034 ... 1st Respondent inall WPs 2. Deputy Director of Income Tax (Investigation Wing) Unit-4(1) Chennai Income Tax Investigation Wing Building 108. M.G.Road Nungambakkam Chennai-600 034. ... 2nd Respondent in W.P.No.12848/2018 W.P.No.12848/2018Writ Petition filed under Article 226 of theConstitution of India to issue a Writ of Mandamus, directingthe first respondent to provide the entire set of documentsreferred by the petitioner in his letters dated 23.03.2018 and21.05.2018 W.P.No.13160/2018Writ Petition filed under Article 226 of theConstitution of India to issue a Writ of CertiorarifiedMandamus, calling for the records on the file of the respondentcontained in order No. 1/ DCIT(BP) 2018-2019 dated 23.05.2018passed under section 24(4) of the Benami Property TransactionsAct, 1988. and to quash the same as arbitrary unjust andillegal. https://hcservices.ecourts.gov.in/hcservices/ W.P.No.13161/2018Writ Petition filed under Article 226 of theConstitution of India to issue a Writ of CertiorarifiedMandamus, calling for the records on the file of the respondentcontained in order No. 2/ DCIT(BP) 2018-2019 dated 23.05.2018passed under section 24(4) of the Benami Property TransactionsAct, 1988. and to quash the same as arbitrary unjust andillegal . For Petitioner : Mr.R.Sivaraman For Respondents : Mr.A.P.Srinivas Senior Standing Counsel Heard Mr.R.Sivaraman, learned counsel appearing for thepetitioner and Mr.A.P.Srinivas, learned Senior Standing Counselappearing for the Revenue. 2. The petitioner has filed three writ petitions. InW.P.No.12848 of 2018, the petitioner seeks for issuance of aWrit of Mandamus to direct the 1st respondent, the DeputyCommissioner of Income Tax (Benami Prohibition) to furnish theentire set of documents referred by the petitioner in hisletters dated 23.03.2018 and 21.05.2018 and in W.P.Nos.13160 and13161 2018, the petitioner has challenged the order passedunder section 24(4) of the Benami Property Transactions Act,1988. 3. The petitioner is stated to be the beneficial owner ofthe property in question. First, I take up W.P.No.12848 of2018. The petitioner has made two representations, thelatest of which being 21.05.2018. Pursuant to the earlierrepresentation dated 23.03.2018, the Department has furnishedcopies of the following materials:- (i) Copy of sworn statement recorded from ShriAnand Parekh dated 16.03.2018; (ii) Copies of the Inspection Reports in case ofM/s.Surana Corporation Limited, conducted by theconsortium of banks led by State Bank of India,Overseas Branch, Chennai, on 05.06.2014, 05.01.2015 and12.10.2015 which clearly establish the fact of no stockof gold and no activities at factory/shop; (iii) copy of the Joint Inspection Report forworking capital conducted by Central Bank of India &Bank of India conducted on 21.11.2014; (iv) Sumission dated 19.04.2018 received fromTANGEDCO in Lr.No.CFC/GL/FC/ACCTS/DFC/AO/TAX/F.MISC/D.8/2018 which establishes the fact that the amountpayable to TANGEDCO by M/s.Surana Green Energy Limitedcan be adjusted against the due amount of theM/s.Surana Corporation Limited; (ii) Copies of the Inspection Reports in case ofM/s.Surana Corporation Limited, conducted by theconsortium of banks led by State Bank of India,Overseas Branch, Chennai, on 05.06.2014, 05.01.2015 and12.10.2015 which clearly establish the fact of no stockof gold and no activities at factory/shop; (iii) copy of the Joint Inspection Report forworking capital conducted by Central Bank of India &Bank of India conducted on 21.11.2014; (iv) Sumission dated 19.04.2018 received fromTANGEDCO in Lr.No.CFC/GL/FC/ACCTS/DFC/AO/TAX/F.MISC/D.8/2018 which establishes the fact that the amountpayable to TANGEDCO by M/s.Surana Green Energy Limitedcan be adjusted against the due amount of theM/s.Surana Corporation Limited; (v) Deleted word document having name "20995736"found during the forensic analysis of the Apple MacBook Pro (S.No.CO2J1EV8DEY3), seized vide annexureANN/TM/B&D/S dated 09.11.2017 from the residentialpremises of Shri. Dinesh Chand Surana and Shri.RahulSurana. This shows the involvement of Shri. DineshChand Surana/Shri.Rahul Surana with the companies SaysoExim Private Limited, Vinayaga Infra Limited, NaturalCoal Private Limited, Thribovan Enterprises PrivateLimited & M/s. Bell Tower Enterprises LLP (CDenclosed)." On receipt of those documents, the petitioner has givenrepresentation dated 21.05.2018 in which, the following havebeen sought for:-"Any such other sworn statements taken during thesurvey proceedings on 09.03.2017." 4. In my considered view, the request for any other swornstatements taken during the survey proceedings on 09.03.2017 isabsolutely vague. Apart from that, the proceedings were notconducted by the 1st respondent but by the 2nd respondent.Therefore, to seek any other sworn statements recorded by the2nd respondent from the 1st respondent is not maintainable andtherefore, such request has to be rejected and accordingly,rejected. 5. The petitioner also requests copy of sworn statementrecorded from him. This statement was also recorded by the 2ndrespondent during the course of survey proceedings. This courtis inclined to entertain the request made by the petitionerfor the reason that statement which was recorded from thepetitioner by the 2nd respondent during the course of surveyproceedings shown to be prima facie used for issuing noticeunder the provisions of Benami Property Transactions Act.Therefore, this court is of the view that the provisions ofnatural justice is met. This statement is given especiallywhen the matter has already culminated in an order under section24(4) of the Act, therefore, to the said extent alone, thepetitioner would be entitled for the relief. Accordingly, the1st respondent is directed to provide the certified copy of thestatement given by the petitioner in the survey proceedings https://hcservices.ecourts.gov.in/hcservices/ which was admitted, within a period of one week from the date ofreceipt of a copy of this order. 6. The petitioner has filed W.P.Nos.13160 & 13161 of 2018challenging the order dated 23.05.2018 under section 24(4) ofthe Act. In my considered view, the prayer sought for by thepetitioner is not maintainable, since the order passed undersection 24(4) of the Act is being an order of provisionalattachment and the petitioner cannot be stated to have beenaggrieved over such order, especially, when the adjudicatingauthority under the Benami Act has already initiated proceedingsunder section 24(4) of the Act, which is only a provisionalattachment and cannot be permitted to stall the adjudicationunder the Act by the adjudicating authority. Therefore, therelief sought for by the petitioner in W.P.Nos.13160 & 13161of 2018 cannot be granted. 6. The petitioner has filed W.P.Nos.13160 & 13161 of 2018challenging the order dated 23.05.2018 under section 24(4) ofthe Act. In my considered view, the prayer sought for by thepetitioner is not maintainable, since the order passed undersection 24(4) of the Act is being an order of provisionalattachment and the petitioner cannot be stated to have beenaggrieved over such order, especially, when the adjudicatingauthority under the Benami Act has already initiated proceedingsunder section 24(4) of the Act, which is only a provisionalattachment and cannot be permitted to stall the adjudicationunder the Act by the adjudicating authority. Therefore, therelief sought for by the petitioner in W.P.Nos.13160 & 13161of 2018 cannot be granted. 7. In the result W.P.No.12848 of 2018 is disposed of bydirecting the 1st respondent to furnish certified copy ofsworn statement recorded from the petitioner during course ofsurvey proceedings, within a period of one week from the date ofreceipt of a copy of this order and the order of interim staygranted in this writ petition is vacated. 8. For the reasons stated, above, the relief sought for inW.P.Nos.13160 & 13161 of 2018 cannot be granted and therefore,the writ petitions are dismissed and the order of interim staygranted in these writ petitions are vacated. 9. The adjudicating authority under the Act has issued showcause notice and fixed the hearing on 02.08.2018. It is wellopen to the petitioner to raise all contentions before theadjudicating authority and the matter shall be proceeded inaccordance with law. 10. For the reasons stated above, the prayer to implead theparties cannot be acceded to. Accordingly, impleadingpetitions, W.M.P.Nos.19457 to 19460 of 2018 are dismissed.Consequently, connected miscellaneous petitions are dismissed. To 1. Deputy Commissioner of Income Tax (Benami Prohibition) Room No.104, 1st Floor Income Tax Investigation Wing Building 108 M.G.Road, Nungambakkam Chennai - 600 034 2. Deputy Director of Income Tax (Investigation Wing) Unit-4(1) Chennai Income Tax Investigation Wing Building 108. M.G.Road Nungambakkam Chennai-600 034. +1cc to Mr.R.Sivaranan, Advocate, S.R.No.42585+1cc to Mr.A.P.Srinivas, Advocate, S.R.No.42494W.P.Nos.12848, 13160 & 13161 of 2018 &W.M.P. Nos.15473 & 15474, 15099 & 15100 of 2018 & 19457 to 19460 of 2018 SS(CO)GSP(16/07/2018)