Petition dismissed for tax arrears, Bank of Baroda account attachment upheld. Follow proper legal procedures.

The Court dismissed the petition seeking directions to credit a specific amount to the petitioner's account and avoid interest and penalties related to tax arrears. The Court noted the petitioner's failure to pay income tax dues and upheld the attachment of the Bank of Baroda's account. Emphasizing the need for following proper legal procedures to vary court orders, the Court concluded that the petitioner's arguments had likely been addressed in a previous related writ petition, leading to the dismissal of the current petition without costs.

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Issues:
1. Petitioner's request for directions to credit the account with a specific amount and to avoid interest and penalty.
2. Background of arrears of tax and penalty from 1993-94 to 1997-98.
3. Actions taken by Income Tax Department regarding Bank of Baroda's account and attachment.
4. Petitioner's argument regarding the amount deposited with Bank of Baroda and subsequent events.
5. Court's analysis of the petitioner's failure to pay income tax dues and the withdrawal of the notice to Reserve Bank of India.
6. Decision of the Court to dismiss the petition.

Issue 1 - Petitioner's Request for Directions:
The petitioner sought directions for the Commissioner of Income Tax and Tax Recovery Officer to credit an amount of Rs. 3.94 crores to their account, part of alleged arrears of tax, and to avoid charging interest and imposing penalties from a specific date. The petitioner argued that if the amount with Bank of Baroda had been handed over to the Income Tax Department, interest and penal proceedings would have ceased.

Issue 2 - Arrears of Tax and Penalty:
The petitioner had outstanding tax and penalty payments from 1993-94 to 1997-98 amounting to over Rs. 7.00 crores, including interest by August 20, 2007. The Income Tax Department took actions due to the petitioner's failure to fulfill tax obligations, including notices to Bank of Baroda for remittance of the petitioner's funds.

Issue 3 - Actions Regarding Bank of Baroda:
The Income Tax Department issued notices to Bank of Baroda under Section 226(3) of the Income Tax Act, leading to an attachment of Bank of Baroda's account with the Reserve Bank of India. Subsequently, the attachment was withdrawn based on Bank of Baroda's assurance to pay the dues.

Issue 4 - Petitioner's Argument:
The petitioner contended that Bank of Baroda did not honor the Income Tax Department's notice, resulting in the attachment of Bank of Baroda's account. The petitioner claimed that the Income Tax Department negligently allowed withdrawal of the attachment and permitted Bank of Baroda to file a writ petition, causing prejudice to the petitioner.

Issue 5 - Court's Analysis:
The Court noted the petitioner's failure to pay income tax dues and addressed the withdrawal of the notice to Reserve Bank of India. While finding no fault in the withdrawal, the Court highlighted that the notice to Bank of Baroda under Section 226(3) remained in effect, keeping the account attachment in place. The Court emphasized that seeking to vary a previous court order required specific legal procedures.

Issue 6 - Court's Decision:
The Court dismissed the petition without any costs, stating that the petitioner's arguments had likely been considered during a previous court order in a related writ petition. The Court clarified that seeking variation of a court order needed to be done within the existing legal proceedings.

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