HC permitted assessee to approach dept. for lifting of bank attachment

Case Details: Forte Solutions (P.) Ltd. v. Principal Addl. Director General, DGGI, Chennai - [2022] 139 taxmann.com 42 (Madras)

Judiciary and Counsel Details

• • Dr Anita Sumanth, J.
  • B. Kumar, Sr. Counsel & S. Ramachandran for the Petitioner.
  • V. Sundareswaran, Sr. Panel Counsel for the Respondent.

Facts of the Case

The assessee was engaged in the business of recruitment of manpower. The department conducted search in the premises of assessee and thereafter bank accounts were provisionally attached. It filed writ petition before the High Court foe lifting of provisional attachment and submitted that there were manifold difficulties being faced by businesses on account of the pandemic.

High Court Held

The Honorable High Court observed that the assessee was carrying on business and was continuing to make an earnest attempt to repay dues to revenue. However, attachment of bank account stood in way of business and lifting of provisional attachment would be in the best interests of both the assessee as well as the revenue. Therefore, the Court permitted assessee to approach department for lifting of bank attachment on furnishing an undertaking to pay dues in instalments.

List of Cases Reviewed

• • Internet and Mobile Association of India v. Reserve Bank of India [2020] 115 taxmann.com 53/158 SCL 448 (SC)
  • Modern Dental College and Research Centre v. State of Madhya Pradesh [2016] 7 SCC 353 (para 9)
  • Nokia India (P.) Ltd. v. Addl. CIT [2015] 13 SCC 729 (para 10) followed.

List of Cases Referred to

• • Internet and Mobile Association of India v. Reserve Bank of India [2020] 115 taxmann.com 53/158 SCL 448 (SC) (para 9)
  • Modern Dental College & Research Centre v. State of Madhya Pradesh [2016] 7 SCC 353 (para 9)
  • Nokia India (P.) Ltd. v. Addl. CIT [2015] 13 SCC 729 (para 10).