Attachment Orders under Income Tax Act Ceased; Court Disposes Writ Petitions without Fresh Attachments

The court held that the attachment orders under section 132(9B) of the Income Tax Act ceased to have effect after six months as per section 132(9C). As the attachments had become infructuous, the court refrained from examining their validity and disposed of the writ petitions. No fresh attachments were made, confirming the cessation of the proceedings. The court emphasized adherence to the statutory provisions and closed the case without costs.

---

---

Issues:
Challenging attachment of properties under section 132(9B) of the Income Tax Act, 1961.

Analysis:
1. Attachment of Properties: The writ petitions challenge the attachment of properties under section 132(9B) of the Income Tax Act, 1961. The impugned orders attached bank accounts and immovable properties of the petitioners. The petitioners argue that the attachment proceedings are illegal and should be quashed as they are not allowed to operate their bank accounts or deal with the properties. The petitioners rely on the expiration of six months from the date of the order as per sub-clause 9C of Section 132 of the Act to support their contention that the attachment orders should be set aside.

2. Legal Arguments: The petitioners' counsel argues that the impugned attachment proceedings are illegal based on the provisions of section 132(9B) and (9C) of the Income Tax Act. The counter affidavits filed by the respondents mention the specific period of effectiveness of the provisional attachment orders under section 132(9C), stating that the attachments ceased to have effect after six months from the date of the orders. The respondents argue that the prayer in the writ petitions has become infructuous due to the clear terms of sub-section 9C of Section 132.

3. Judicial Decision: The court, after hearing both sides, notes that the impugned attachment orders have ceased to have effect after the expiry of six months from the date of the orders as per Section 132(9C) of the Income Tax Act. The court refrains from delving into the merits of the attachment or its validity, as the attachments have already become infructuous. The court observes that no fresh attachment has been made under any other provision of the Income Tax Act, confirming the cessation of the impugned attachment proceedings. Consequently, the court disposes of the writ petitions by stating that the attachments ceased to have effect as of specific dates in August 2018, in accordance with the law.

4. Conclusion: The court's decision is based on the clear statutory provision of Section 132(9C) regarding the period of effectiveness of provisional attachment orders made under Section 132(9B) of the Income Tax Act. The court emphasizes that the impugned attachment proceedings have become infructuous due to the expiration of the specified time period, and no further action is required. The writ petitions are disposed of without any costs, and connected miscellaneous petitions are closed.

---