Mr.S.Kanmani Annamalai, learned Additional Government Pleader (Tax), takes notice for the first respondent. The second respondent is the Bank / Garnishee, against whom, the order of attachment impugned in this writ petition was issued, preventing the bank from permitting the petitioner to operate the account, since the petitioner is in arrears of sales tax to the tune of Rs.19,45,267/-.
2. Heard both sides.
3. The grievance of the petitioner is that there is no necessity for issuance of the impugned order of attachment by claiming that the petitioner is in arrears of sales tax to the tune of Rs.19,45,267/-, when the TDS certificate issued by the principal namely M/s.P & C Projects Private Limited, under whom, the petitioner is doing a works contract, would indicate the tax deduction to the tune of Rs.37,77,109/-. Therefore it is contended that the first respondent has issued the impugned proceedings without cross verification of those details.
4. However, the learned counsel appearing for the petitioner submitted that the first respondent can very well cross verify those particulars and in the mean time the petitioner may be permitted to operate the bank accounts, so that the day to day affairs of the petitioner is not totally paralyzed. The learned counsel appearing for the petitioner has also fairly submitted that the petitioner may be permitted to operate the bank account in respect of the amount over and above the disputed liability of the tax Rs.19,45,267/-, pending cross verification of the above said facts.
5. The learned Additional Government Pleader (Tax) submitted that if the petitioner is protecting the interest of the department by retaining the said sum of Rs.19,45,267/- in their account, at any point of time, during the pendency of the verification of the details as given by the petitioner, there will not be any impediment for the first respondent to permit the petitioner to operate the account in respect of the money over and above the said sum of Rs.19,45,267/-.
6. Considering the above facts and circumstances and also considering the fact that it is claimed by the petitioner that the principal of the petitioner has also issued a TDS for Rs.37,77,109/- and such fact has to be verified by the first respondent and further considering the fact that the petitioner has come forward to protect the interest of the department by retaining the said sum of Rs. Rs.19,45,267/- in their bank account, this Writ petition is allowed in terms as stated hereunder:-
The order passed by the first respondent dated 21.03.2017 impugned in this writ petition is set aside subject to the following terms & conditions:
(a) The petitioner shall allow a sum of Rs.19,50,000/- to be made available in the bank account at all times pending verification by the first respondent as stated supra.
(b) The petitioner is entitled to operate the bank account in respect of the amount available over and above the said sum of Rs.19,50,000/-.
(c) The first respondent shall verify the facts as stated by the petitioner and pass fresh order within a period of seven days from the date of receipt of a copy of this order. No costs. Consequently connected miscellaneous petitions are closed.
28.03.2017 Speaking / Non Speaking Order Index: Yes/ No mk Note: Issue order copy on 28.03.2017 To
1. The Assistant Commissioner (CT) Amaindakarai Assessment Circle Chennai-600 102.
2. The Branch Manager Indian Bank A.E. Block 175, 11th Main Road, Anna Nagar, Chennai-600 040.
K.RAVICHANDRABAABU,J.
mk W.P.Nos.7620 of 2017 28.03.2017 http://www.judis.nic.in