TaxTMI 
TaxTMI 
2014 (5) TMI 326
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....business of the petitioner's society is to run the scheme for members of the society and to facilitate the investment for the assessment year 2011-2012, the income tax return was filed by the petitioner on 29.9.2011 declaring the loss of Rs. 22,31,02,195/-, which was revised on 30.3.2013 wherein the returned loss was enhanced to Rs.22,37,09,412/-. During the course of proceedings of assessment, certain queries were made from the assessee by the Assessing Officer regarding the creditworthiness, genuineness and identity of the investors of the aforesaid society. The petitioner/assessee was not cooperating in furnishing the requisite information. Malpractice was said to have been adopted by the petitioner. In regular assessment approximate total income of the petitioner was likely to be assessed at Rs.1100 crores and tentative tax liability was of Rs. 445 crores. Therefore, Joint Commissioner of Income Tax Range-3,Lucknow vide its letter dated 27.2.2014 sought prior approval for provisional attachment of bank accounts of petitioner. His action was approved by the Commissioner of Income Tax-1 Lucknow vide its letter dated 28.2.2014. Consequently, the bank accounts of the petitione....
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.... Officer in compliance thereof passed attachment order on 5.3.2014. In the counter affidavit it is stated that investment made in the society by the members and the Directors do not appear to be genuine. The identity and creditworthiness of the members who contributed huge amount in the fund of the petitioner's society are not coming-forth. The requisite information sought by the Assessing Officer has not been furnished by the petitioner, as such he was compelled to pass an order for attachment of bank accounts of the assessee to protect the interest of revenue because the huge amount of tax liability is likely to occur. The rejoinder affidavit has been filed by the petitioner whereby he tried to meet out the allegation made in the counter affidavit reformed certain documents which were filed during the course of assessment. During the pendency of this writ petition assessment was completed for assessment year 2011-2012 by the Joint Commissioner of Income Tax, wherein the net liability of tax was assessed at Rs. 8,40,11,21,730.00. A copy of assessment order was placed before this Court by the learned counsel for the Revenue during the course of hearing. He also placed a copy....
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....ssessing Officer is of the opinion that for the purpose of protecting the interests of the revenue it is necessary so to do , he may, with the previous approval of the Chief Commissioner, Commissioner, Director General or director by order in writing, attach provisionally any property belonging to the assessee in the manner provided in the Second Schedule. Explanation.- For the purposes of this sub section, proceedings under sub-section (5) of section 132 shall be deemed to be proceedings for the assessment of any income or for the assessment or reassessment of any income which has escaped assessment] (2) every such provisional attachment shall cease to have effect after the expiry of a period of six months from the date of the order made under sub-section (1): Provided that the [Chief Commissioner, Commissioner, Director General or Director] may, for reasons t be record in writing, extend the aforesaid period by such further period or periods as he thinks fit, so, however, that the total period of extension shall not in any case exceed two years; Provided further that where an application for settlement under section 245 C is made, the period commencing from the date on which ....
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....269-UD. (3) So far as Section 142 (2A) is concerned, the provisions contained therein have been substantially amended and proviso has been added to Section 142 (2A) with effect from 1.6.2007 which provide that no direction for special audit shall be issued without affording reasonable opportunity of hearing to the assessee. (4) So far as Chapter XX-C is concerned, it has also been substantially amended and sub-section (1A) of section 269UD provides that appropriate authority shall give reasonable opportunity of being heard to the transferer, the person in occupation of the immovable property before passing the order of pre-emptive purchase. But so far as provision of section 281B is concerned, statute has not yet decided to make provisions of giving reasonable opportunity to the assessee before passing an order under Section 281B of the Act. (5) If the argument of the learned counsel for the petitioner is accepted that the attachment of the bank accounts would cause serious adverse consequences to the assessee then in each and every cases, the pre-decisional hearing shall amount of adding the provisions in the statute book, for which legislature has not yet decided to add. The c....