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Writ petition challenging bank account freeze closed after petitioner agrees to cooperate with investigation. Account had restrictions on debit transactions. The court closed the writ petition challenging the freezing of the bank account after the petitioner agreed to cooperate with the investigation. The court ...
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Writ petition challenging bank account freeze closed after petitioner agrees to cooperate with investigation. Account had restrictions on debit transactions.
The court closed the writ petition challenging the freezing of the bank account after the petitioner agreed to cooperate with the investigation. The court recorded the submissions of both parties, finding that the account was not frozen but only had restrictions on debit transactions. No costs were awarded, and the related miscellaneous petition was also closed following this decision.
Issues: Petitioner seeks declaration on the illegality of the respondent's actions regarding the freezing of the bank account. The respondent contests the freezing of the account and accuses the petitioner of non-cooperation with the investigation.
Analysis: The petitioner filed a writ petition to challenge the respondent's seizure and attachment of the bank account, alleging it to be illegal and without lawful authority. The petitioner's counsel argued that the freezing of the account following a search by the respondent was in violation of Section 132(8A) of the Income Tax Act, 1961, which allows such actions for a maximum of 60 days only. The petitioner sought relief from the continued freezing of the account, stating it to be unlawful.
During the hearing, the respondent's counsel refuted the claim that the account was frozen, stating that only a communication was sent to the bank requesting restrictions on debit transactions without the respondent's knowledge. The respondent's counsel further accused the petitioner of failing to cooperate with the investigation by not attending the inquiry after receiving a summons. The respondent's position was that the account was not frozen, and the petitioner's non-cooperation was hindering the investigation process.
In response to the statements made by both counsels, the petitioner's counsel requested the writ petition to be closed, asserting that the petitioner would cooperate with the investigation. Considering the arguments presented by both sides and the circumstances of the case, the court decided to close the writ petition, recording the submissions made by the parties. No costs were awarded, and the connected miscellaneous petition was also closed as a result of this judgment.
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