M.K. RAJENDRAN PILLAI vs. ASSISTANT COMMISSIONER OF INCOME TAX

WP(C)/40852/2023HC KeralaKLHC01091568202305 January 2024Author: HONOURABLE MR. JUSTICE D. K. SINGH7 pages

AI SummaryDismissed

What did the High Court hold?

The High Court disposed of the writ petition based on the statement filed by the respondents. The respondents conceded that provisional attachment orders are valid only for a limited period, as stipulated under Section 222(2)(b) of the Income Tax Act, with provisions for extension up to two years or sixty days from the assessment order, whichever is later. They further stated that upon expiry of this period, the attachment order automatically becomes void ab initio. In the petitioner's case, the last attachment was made on 30.12.2019, valid for six months, and consequently became void ab initio thereafter. Therefore, the respondents submitted that the provisional attachments made were null and void as of the date of their statement. The Court explicitly noted that there was no attachment on the properties of the petitioner prevailing at that time, rendering the writ petition infructuous.

What were the facts?

The petitioner, M.K. Rajendran Pillai, filed a writ petition seeking a mandamus to lift the attachment on his immovable properties. The attachment was made after assessment orders for assessment years 2012-13 to 2018-19 were finalized. Subsequently, the Income Tax Appellate Tribunal (ITAT) set aside these assessment orders and additions, remanding the matter for fresh assessment. Following the ITAT's order, the assessing authority deleted the additions, and a refund of Rs. 10,77,61,574/- was calculated to be granted to the petitioner. The petitioner argued that with no tax liability, the attachment was unjustified. The respondents, including the Assistant Commissioner of Income Tax and the Tax Recovery Officer, filed a statement.

What were the issues?

1. Whether the attachment on the petitioner's immovable properties is justified and subsisting, given that the assessment orders leading to the attachment have been set aside by the ITAT and a significant refund is due. Assessee's Contention: The petitioner argued that once the assessment orders were set aside by the ITAT and a substantial refund was determined, there was no tax liability to justify the continued attachment of his properties. The attachment was therefore illegal and should be lifted. Revenue's Contention: The respondents contended that provisional attachment orders are valid only for a specific period, typically six months from the date of the order, unless extended. They stated that the total period of extension cannot exceed two years or sixty days from the date of the assessment order, whichever is later. According to their submission, after the expiry of this period, the attachment order automatically becomes void ab initio. They specifically noted that the last attachment order was dated 30.12.2019 and was valid for six months, after which it became void.

Which sections of the Income-tax Act were involved?

222(2)(b)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, had in its order

DATED 15.02.2019 Exhibit P4OF THE ORDER DATED 30.10.2019 PASSED BY THE 1ST RESPONDENT IN RESPECT OF IMMOVABLE PROPERTIES BELONGING TO THE PETITIONER Exhibit P5OF ORDER DATED 28.06.2019 PASSED BY THIS HON'BLE HIGH COURT IN W.P(C) 17640 OF 2019. Exhibit P6OF THE ORDER DATED 26.07.2019 PASSED BY THE PRINCIPAL COMMISSIONER OF INCOME TAX DISPOSING OF THE PETITION DATED 22..05.2019 Exhibit P7 TRUE COPIES OF THE NOTICES DATED 27.11.2019 ISSUED BY THE 1ST PETITIONER UNDER S. 153A FOR AYS 2008-09 TO 2011-12 Exhibit P8OF THE LETTER DATED 11.02.2020 ISSUED BY THE PETITIONER TO THE 1ST RESPONDENT. Exhibit P9OF THE LETTER DATED 21.02.2020 ISSUED BY THE PETITIONER TO THE 1ST RESPONDENT. Exhibit P10OF ORDER DATED 25.02.2020 PASSED BY 1ST RESPONDENT. Exhibit P11-Vol 1 TRUE COPIES OF THE ASSESSMENT ORDERS DATED 31.12.2019 ALONG WITH DEMAND NOTICES FOR AYS 2008-09 TO AY 2011-12 (VOL 1) Exhibit P11-Vol 2 TRUE COPIES OF THE ASSESSMENT ORDERS DATED 31.12.2019 ALONG WITH DEMAND NOTICES FOR AYS 2008-09 TO AY 2011-12 (VOL 2) Exhibit P12-Vol 1 TRUE COPIES OF THE ASSESSMENT ORDERS DATED 17.03.2020 FOR AYS 2012-13 TO AY 2018-19 (VOL

1) Exhibit P12-Vol 2 TRUE COPIES OF THE ASSESSMENT ORDERS DATED 17.03.2020 FOR AYS 2012-13 TO AY 2018-19 (VOL 2) Exhibit P12-Vol 3 TRUE COPIES OF THE ASSESSMENT ORDERS DATED 17.03.2020 FOR AYS 2012-13 TO AY 2018-19 (VOL 3) Exhibit P13 TRUE COPIES OF THE NOTICES OF DEMAND DATED 15.10.2020 ISSUED BY THE 2ND RESPONDENT Exhibit P14 TRUE COPIES OF THE NOTICES OF DEMAND DATED 16.10.2020 ISSUED BY THE 2ND RESPONDENT Exhibit P15 TRUE COPIES OF THE ORDERS DATED 13.11.2020 PASSED BY THE 2ND RESPONDENT Exhibit P16 TRUE COPIES OF THE ORDERS DATED 17.11.2020 PASSED BY THE 2ND RESPONDENT Exhibit P17OF LIST OF IMMOVABLE PROPERTIES WHICH WERE SUBJECT TO PROVISIONAL ATTACHMENT BUT NOT SUBSEQUENT ATTACTMENT UNDER S 222(1)OF THE ACT Exhibit P18 TRUE COPIES OF THE ORDERS PASSED IN FORM 5 OF THE DIRECT TAX VIVAAD SE VISWAAS SCHEME (DTVSVS) FOR AYS 2008-09 TO 2011-12 Exhibit P19 TRUE COPIES OF THE CONSEQUENTIAL GIVING EFFECT ORDERS PASSED UNDER THE DTVSVS FOR AYS 2008-09 TO 2011-12 Exhibit P20 TRUE COPIES OF THE ORDERS PASSED BY THE CIT(A) DISMISSING THE APPEALS FOR AYS 2008-09 TO 2011-12 AS WITHDRAWN Exhibit P21 TRUE COPIES OF THE NOTICES DATED 19.06.2023 INTIMATING THE PETITIONER ABOUT THE CLOSURE OF PENALTY PROCEEDINGS FOR AYS 2008-09 TO 2011-12 Exhibit P22OF THE COMMON ORDER PASSED BY THE CIT(A) DATED 16.03.2022 FOR AYS 2012-13 TO 2017-18 Exhibit P23OF THE COMMON ORDER DATED 20.01.2023 PASSED BY THE ITAT FOR AYS 2012-13 TO 2017-18 Exhibit P24 TRUE COPIES OF LETTER DATED 04.02.2023 ISSUED BY THE PETITIONER TO THE 1ST RESPONDENT Exhibit P25 TRUE COPIES OF LETTER DATED 02.06.2023 ISSUED BY THE PETITIONER TO THE 1ST RESPONDENT Exhibit P26 TRUE COPIES OF LETTER DATED 24.08.2023 ISSUED BY THE PETITIONER TO THE 1ST RESPONDENT Exhibit P27 TRUE COPIES OF LETTER DATED 31.10.2023 ISSUED BY THE PETITIONER TO THE 1ST RESPONDENT Exhibit P28OF THE LETTER DATED 06.06.2023 ISSUED BY THE 1ST RESPONDENT Exhibit P29 TRUE COPIES OF LETTER DATED 14.06.2023 ISSUED BY THE PETITIONER Exhibit P30 TRUE COPIES OF THE ORDERS DATED 04.10.2023 GIVING EFFECT TO THE ORDER OF THE INCOME TAX APPELLATE TRIBUNAL Exhibit P31OF THE PETITIONER'S RECTIFICATION PETITION UNDER SECTION 154 OF THE ACT DATED 30.10.2023 FOR AY 2017-18 Exhibit P32OF THE CHALLAN DATED 01.11.2023 DEMONSTRATING PAYMENT OF RS. 8,878/- FOR AY 2015-16 Exhibit P33OF THE LETTER DATED 10.11.2023 ISSUED BY THE PETITIONER TO THE 1ST RESPONDENT Exhibit P34OF THE LETTER DATED 11.11.2023 ISSUED BY THE PETITIONER TO THE 2ND RESPONDENT Exhibit P35OF LIST OF IMMOVABLE PROPERTY ATTACHED VIDE ORDER DATED 13.11.2020 AND 17.11.2020

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