NIMITYA PROPERTIES LTD Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE two petitioners herein, viz., Nimitya Properties Ltd. and Nimitya Promoters Ltd., who belong to the same group, have filed two petitions each. In the first two petitions filed by these petitioners, the challenge is laid to the orders dated 06.02.2009 passed under Section 281B of the Income Tax Act (hereinafter referred to as "the Act"), provisionally attaching their properties. Other two petitions by each of them came to be filed because of the orders dated 03.08.2009 passed under Section 281B of the Act extending the time of attachment of the properties upto 31.07.2010. Thus, these subsequent orders are passed as a continuation/extension of the first order. The circumstances under which the attachment orders in respect of properties belonging to these two petitioners have been passed are identical. For these reasons, writ petitions were heard together and by this common judgment, issues raised in all these writ petitions are dealt with. For the sake of brevity, we shall take not of the facts of Writ Petition (C) No. 8436/2009.

(2.) A search and seizure operation was conducted by the Income Tax authorities at the office premises of Nimitya Properties Ltd. on 06.11.2008. Some documents were seized and the premises were sealed. Twenty days thereafter, i.e, on 26.11.2008, office premises of the petitioners were de- sealed. The documents were put in one almirah and restrained order was passed under Section 132(3) of the Act. On 30.12.2008, the almirah was opened by the Deputy Director of Investigation (respondent No. 3) and documents were seized. It was followed by order dated 06.02.2009 issued under Section 281B of the Act by the Income Tax Officers attaching the property No. 3, Avenue Cassia, Westend Greens, Rajokri, New Delhi. This order reads as under:

(3.) ACCORDING to the petitioners, the properties attached form part of stock-in-trade and no tax was outstanding against the petitioners. Thus, letter dated 10.02.2009 was written bringing these aspects to the notice of the respondents and the respondents were also asked to provide reasons for attachment of the properties. This was followed by application/letter dated 04.03.2009 requesting the respondent No. 2 to withdraw the said orders dated 06.02.2009, but no response was received. Therefore, reminder dated 16.03.2009 was also sent. In reply thereto, the respondent No. 2 informed the petitioners vide its letter dated 17.03.2009 that attachment orders have been passed on the basis of proposal received from the respondent No. 3 vide letter dated 30.12.2008 informing that a large number of incriminating documents were seized and huge demand is likely to be raised under Sections 153A and 153C and there was an apprehension that the petitioners may transfer the properties just to defer the payment of taxes. Therefore, the respondent No. 3 had requested that to safeguard the interest of Revenue, the said property be attached under Section 281B of the Act pending assessment for the Assessment Year 2007-08.