TaxTMI 
TaxTMI 
2012 (2) TMI 306
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.... writ petitioner is that one consolidated garnishing order was passed in pursuance of the orders passed against the writ petitioner by the Assessing Officer , the Deputy Commissioner, TDS Circle, Bokaro, for different years in spite of the fact that the said orders are subject matter in the appeal before the Commissioner of Income Tax and not only that garnishing order was passed but in fact the money lying in the bank account of the writ petitioner has been taken away by the department. 5. The learned Sr. Counsel for the writ petitioner vehemently submitted that the appellate authority, Commissioner of Income Tax did not pass any order on pending stay petition filed by the writ petitioner before the Income Tax Commissioner. It is submitte....
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....been totally violated by the Assessing Officer which has denied the petitioner to raise objection against the garnishing order and if that opportunity could have been given to the writ petitioner, the petitioner could have demonstrated that no garnishing order could have been issued in this special circumstances. 8. The learned Sr. Counsel for the petitioner also relied upon another judgment of the Hon'ble Supreme Court in K.C.C. Software Ltd and others Vs. Director of Income -Tax(Investigation) and others, reported in [ 2008] 298 ITRI(SC) wherein it has been held that it would be in the interests of the assessee as well as the Revenue if the amount transferred to the PD account of the Commissioner is kept in interest-bearing fixed deposit....
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....es a notice by the Assessing Officer to the person who is holding the money of the assessee and that notice may require forthwith payment of the money to the Assessing Officer or Tax Recovery Officer and at the same time as per sub-clause(iii) of sub-section-3 of Section 226 ,copy of the notice is required to be forwarded to the assessee. Sub-clause(i) of subsection( 3) is not depend upon subsequent procedure given in sub-clause(iii) & (iv) of sub-section (3) of Section 226 of the said Act and therefore, specific provision has been made in sub-clause(vii) of sub-section(3) itself of Section 226 that the Assessing Officer or Tax Recovery Officer may at any time or from time to time amend or revoke any notice issued under this sub-section or ....
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.... order and receiving of the money by the Assessing Officer . Otherwise the word at any time or from time to time will be of no consequence in sub-clause(vii) of sub-section (3) of Section 226 of the said Act. It goes without saying that in the garnishing order, first money is secured(by attachment) and then it is received by the person, who is entitled to receive. The attachment is only interim arrangement and it also does not attain the finality with the payment to the person who is entitled to receive the amount for whom the garnishing order was passed till liability of that defaulter attains finality and money is adjusted under lawful order. The money in the hands of receiver of money is only an interim arrangement of securing money. The....