DAR INTERNATIONAL Vs. ASSISTANT DIRECTOR OF INCOME TAX

JUDGEMENT

(1.) ON 17th July, 1991 the premises of the petitioner were searched by the Customs authorities under s. 105 of the Customs Act, 1962 and as many as 27 incriminating documents relating to import business were seized. After complying with the procedure, summons were issued under s. 108 of the Customs Act. ON 18th July, 1991, the Central Economic Intelligence Bureau, Excise and Income-tax Wing issued restraint order under s. 132(3) of the IT Act and served it on the Indian Overseas Bank, so that the petitioner could not operate its account. To challenge the restraint order, Civil Writ No. 3906 of 1992 was filed, in which show-cause notice was issued.

(2.) WHILE the aforesaid writ petition was pending, on 12th Nov., 1992, the IT Department issued notice under s. 281B of the IT Act, attaching the current account No. 3293-CD relating to the petitioner, regarding which restraint order, referred to above, was issued. On the following day, the restraint order was withdrawn with the result the attachment continued. To challenge the attachment order, Civil Writ No. 191 of 1993 has been filed. During the pendency of this writ petition, on 18th Feb., 1993, the IT Department completed the assessment for the year 1990-91 and assessed the income at Rs. 32,19,789 resulting in demand of Rs. 13,56,149.