TaxTMI 
TaxTMI 
2017 (12) TMI 675
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....te Bank of India, and they are aggrieved by the impugned notice, dated 22.03.2017, issued by the first respondent, for recovery of income tax, payable by the second respondent, for the assessment years 2005-06 to 2013-14. The impugned notice states that, the second respondent is due and payable of the income tax of Rs. 69.81 Crores, for the above referred assessment years, and since certain monies of the second respondent were lying with the hands of the petitioner/Bank, the first respondent has issued the impugned notice under Section 226 (3) of the Income Tax Act, 1961, to the petitioner. The validity of this notice is challenged by the petitioner before this Court, in this Writ Petition. 3. The primary ground, on which, the demand not....
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.... first respondent. Further, it is contended that, the Department has proceeded on the basis of decision of the Constitution Bench of the Hon'ble Supreme Court, in the case of Builders Supply Corporation Vs. Union of India, reported in 56 ITR 91. It is reiterated that the impugned notice, is not a demand notice and has been issued in tune with the provisions of the Income Tax Act, 1961. 5. After hearing the learned counsel appearing for the petitioner and the learned Senior Standing Counsel for the first respondent, and perusing the materials placed on record, I am inclined to accept the arguments advanced by the learned counsel appearing for the petitioner, in the light of the decision of the Hon'ble Full Bench of this Court, (in....
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....same stands resolved by view of the Enforcement of Security Interest and Recovery of Debts Laws and Miscellaneous Provisions (Amendment) Act, 2016, Section 41 of the same seeking to introduce Section 31B in the Principal Act, which reads as under:- ''31B. Notwithstanding anything contained in any other law for the time being in force, the rights of secured creditors to realise secured debts due and payable to them by sale of assets over which security interest is created, shall have priority and shall be paid in priority over all other debts and Government dues including revenues, taxes, cesses and rates due to the Central Government, State Government or local authority. Explanation. - For the purposes of this sect....
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....nterest is created''. 7. We, thus, answer the aforesaid reference accordingly. " 6. There is no dispute to the fact that the petitioner is a secured creditor, and in such circumstances, they have precedence over all the dues, payable to the Central Government and the State Government. 7. This Court, in the case of M/s.Well Stores (Madras) Private Limited, Rep by its Director, Mr.R.James, the Tax Recovery Officer-IV, O/o the Principal Commissioner of Income Tax -4, Nugambakkam, in W.P.Nos.40656 of 2015,34703 of 2016 and 3572 of 2017, dated 18.07.2017, considered the validity of the orders of attachment passed by the Income Tax Department, in respect of the properties, for which, loans have been advanced by the secured ....