2020 (2) TMI 993 - HC - Income Tax

Court revokes bank account freeze due to tax communication gap, emphasizes timely orders. Partial refund adjustment advised.

Dinar Tarcar Resources (India) Private Limited & Anr. Versus Assistant Commissioner of Income Tax, Circle 1 (1), Panaji & Ors.

The court resolved the freezing of the petitioners' bank account by revoking the order promptly due to a communication gap on tax dues. The court ... Freezing or attachment of the bank account - HELD THAT:- It is only appropriate that this department uploads the orders at the earliest. Ms. Razaq, on instructions, states that the Assessing Officer, in the present case, will upload the order dated 29.03.2017, which is to be found at Exhibit B, page 20 of the paper book, on the website at the earliest. Ms. Razaq states that otherwise also, the process of digitization is on and these are probably instances of some teething troubles which will also be sorted out at the earliest. According to us, with the aforesaid, the issue relating to freezing or attachment of the bank account stands suitably redressed. Adjustment of the refund amount otherwise due and payable to the petitioners - For the present, the adjustment is to the tune of hardly ₹ 27,250/-. Mr. Vaze however points out that there are further refunds due to the petitioners and the same are also being adjusted based upon such mis-communication. According to us, the petitioners, can immediately write to the authorities explaining their version of the matter and we are quite sure that any further action in the matter of adjustments will be taken after due consideration of the petitioners' version. Issues:1. Freezing of bank account of the petitioners2. Adjustment of refund amount due to the petitionersAnalysis:Issue 1: Freezing of Bank AccountThe judgment addresses the issue of the freezing of the petitioners' bank account. The respondent's advocate informed the court that the order to freeze the bank account had been revoked immediately. This action was taken after realizing a communication gap regarding the tax dues for the Assessment Year 2012-13. The respondent explained that the coercive action was a result of the delay in uploading the order on the website of the Central Processing Center. The department acknowledged the error and revoked the freezing order promptly. The court emphasized the importance of timely uploading of orders to avoid such situations in the future. The Assessing Officer was directed to upload the relevant order at the earliest to prevent similar incidents. Consequently, the court considered the freezing issue suitably resolved.Issue 2: Adjustment of Refund AmountThe second issue pertained to the adjustment of the refund amount due to the petitioners. The court noted that a partial adjustment of &8377; 27,250/- had already been made based on miscommunication. The petitioners' counsel highlighted that further refunds were also pending adjustment. The court advised the petitioners to communicate their version of the matter to the authorities. It assured that any additional adjustments would be made after duly considering the petitioners' explanation. The judgment concluded by disposing of the petition in the mentioned terms, with no order as to costs, and instructed all concerned parties to act upon an authenticated copy of the order.In summary, the judgment resolved the issues of freezing the bank account and adjustment of refund amount by revoking the freezing order promptly and advising the petitioners to communicate with the authorities regarding the pending refunds for appropriate action.