2015 (5) TMI 868

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....M/s Janta Janta Scheme (Regd.), Sirhind but the Income Tax Department has attached these amounts. The plaintiff also pleaded that as M/s Janta Janta Scheme (Regd.) has induced him by fraud to deposit these amounts, the suit for recovery may be decreed. The Income Tax Department, filed a written statement controverting averments in the plaint and pleaded that in view of Section 293 of the Income Tax Act, the suit, is barred. The Income Tax Department also pleaded that M/s Janta Janta Scheme (Regd.) was assessed to income tax but as it did not pay its dues, its accounts were attached and money in these accounts was appropriated towards arrears of income tax. M/s Janta Janta Scheme (Regd.) and its partners filed a written statement denyi....

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....s. 40,000/- with interest. The first appellate Court, has dismissed the appeal filed by the Income Tax Department. Counsel for the appellant submits that there is no question of the Income Tax Department playing any fraud or appropriating any property belonging to Nachhattar Singh. The Income Tax Department in order to recover arrears of income tax, attached money belonging to M/s Janta Janta Scheme (Regd.). The fact that Nachhattar Singh may or may not have deposited money with M/s Janta Janta Scheme (Regd.) or may have been defrauded by M/s Janta Janta Scheme (Regd.) is irrelevant and, therefore, cannot be the basis of a claim against the Income Tax Department or confer jurisdiction upon Civil Courts to decree the suit. Section 293 ....

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....iction of Civil Courts is not barred as money was received by M/s Janta Janta Scheme (Regd.) by playing a fraud. Section 293 of the Income Tax Act reads as follows:-                  "293. No suit shall be brought in any civil court to set aside or modify any proceeding taken or order made under this Act; and no prosecution, suit or other proceeding shall lie Regular Second Appeal No.176 of 1988 -5- against the Government or any officer of the Government for anything in good faith done or intended to be done under this Act." A perusal of Section 293 of the Income Tax Act reveals that no suit shall be brought in any Civil Court to set aside or modify any....