Delhi High Court - Orders
China Construction Sausum India Pvt Ltd vs Union Of India & Ors on 18 May, 2022
Author: Manmohan
Bench: Manmohan, Manmeet Pritam Singh Arora
$~1
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ W.P.(C) 1322/2022
CHINA CONSTRUCTION SAUSUM INDIA PVT LTD.
..... Petitioner
Through: Mr.Naresh Jain with Mr.Alok Kumar,
Advocates.
versus
UNION OF INDIA & ORS. ..... Respondents
Through: Mr.Zoheb Hossain, senior standing
counsel with Mr.Vipul Agrawal and
Mr.Parth Semwal, Advocates.
CORAM:
HON'BLE MR. JUSTICE MANMOHAN
HON'BLE MS. JUSTICE MANMEET PRITAM SINGH ARORA
ORDER
% 18.05.2022 C.M.No.22150/2022 Present application has been filed seeking an order directing conversion of the amount lying in the provisionally attached bank accounts of the petitioner into fixed deposit receipts by the concerned bank. The details of the bank accounts provisionally attached are mentioned hereinbelow:-
S.No. Bank Account No. Balance as on 23.11.2020
1. Standard 5300508806 8,46,58,232.14 Charted
2. ICBC Bank 0166000100000174483 12,47,70,820.44 Ltd.
3. ICBC Bank 0166000100000113223 54,50,95,850.00 Ltd.
Total amount attached 75,45,24,902.58 Signature Not Verified Digitally Signed By:KRISHNA BHOJ Signing Date:19.05.2022 17:15:59 Learned counsel for the petitioner states that the petitioner has no objection if the fixed deposit receipts, so created are provisionally attached.
He states that this arrangement shall be in the interest of justice and shall benefit both the petitioner and the respondents.
Learned counsel for the respondents states that there is no provision to convert the amount lying in the bank account which is provisionally attached to fixed deposit. He, however, states that as per the Section 281B of the Income Tax Act, the assessee can give bank guarantee under Section 281 of the Act.
This Court is of the view that to ask the petitioner whose bank accounts are provisionally attached to furnish a bank guarantee would neither be fair nor practical.
Consequently, in the facts of the present case, this Court directs the bankers of the petitioner to convert the amount lying in provisionally attached bank accounts into fixed deposit receipts, initially for a period of one year with an automatic renewal clause, in the name of the petitioner within seven days. However, the Income Tax Department shall have a lien on the said fixed deposit receipts and the petitioner's bankers shall ensure that the fixed deposit receipts, so created, are not used by the petitioner for any purpose including for raising a loan and/or mortgage and/or security.
It is made clear that the arrangement made by this Court shall continue till an assessment order is passed by the Income Tax Department. Upon the said fixed deposit receipts being created and lien being marked in favour of the Income Tax Department, the petitioner shall be free to operate the bank accounts thereafter.
Signature Not Verified Digitally Signed By:KRISHNA BHOJ Signing Date:19.05.2022 17:15:59With the aforesaid directions, the present application stands disposed of.
W.P.(C) No.1322/2022 & C.M.Nos.3831/2022, 9354/2022, 22149/2022 In view of the order passed today in the aforesaid application being CM No.22150/2022, learned counsel for the petitioner does not wish to press the present writ petition along with pending applications. Accordingly, the same are disposed of as not pressed.
MANMOHAN, J MANMEET PRITAM SINGH ARORA, J MAY 18, 2022 KA Signature Not Verified Digitally Signed By:KRISHNA BHOJ Signing Date:19.05.2022 17:15:59