2018 (10) TMI 1402

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....g textile auxiliaries and water based emulsions in the name of Aditya Chemicals, a proprietary concern. For the business purpose, the petitioner had opened an account with HDFC bank, Memnagar branch, Ahmedabad. The petitioner would utilise this account for drawing LCs to be issued in favour of foreign exporters for import of goods utilised by the petitioner for manufacturing finished product being account no. 16758970000023. Besides this account, petitioner also has other bank accounts. 3. Respondent Tax Recovery Officer issued the impugned notice which was addressed to the petitioner's bank HDFC stating that sum of Rs. 2 crores is due from Aditya Chemicals i.e. the petitioner to Mahesh Gandhi, proprietor of DPS Commodities. Said cre....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... account remains attached. 5. Under such circumstances, in our order dated 25.9.2018 while issuing notice, we had briefly recorded the petitioner's contentions and grievances. It was recorded that the petitioner had no concern with DPS Commodities except for having normal business relations. The department therefore, cannot use the petitioner's account for causing the recovery of the tax dues of DPS Commodities. By way of ad interim relief, the attachment order was stayed. 6. The department appeared in response to the notice and pointed out that the petitioner had borrowed a total of Rs. 2 crores from the said DPS Commodities and its proprietor Mahesh Gandhi and repaid the same over a period of time, last installment of Rs. 75....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....acs was due and payable on such date. ii) The petitioner was fully aware about the order of attachment passed by the department asking the petitioner's banker to pay to the department any sum due and payable to DPS Commodities towards incometax liabilities of DPS Commodities. Though counsel for the petitioner stated that such order was never served on the petitioner, in the petition, as noted, the petitioner has made averments that on account of such attachment, the petitioner's cheque bounced and the payee transporter informed the petitioner, upon which, the petitioner approached the bank and was given a copy of order on 20.9.2018. The petitioner was thus fully aware about the department's attachment of his bank accoun....