GANDHI TRADING Vs. ASSISTANT COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) BY this writ petition, the petitioners seek to challenge the provisional attachment of their (i) bank account and FDRs with the State Bank of India and the American Express Bank, Bombay, (ii) office premises situated at Mehta House, Chowpaty, Bombay 400 007, and (iii) residential flat situated at Fionika, Walkeshwar, Bombay 400 006, by the Asstt. CIT, Circle 7(2), Mumbai, under S. 281B of the IT Act, 1961 ("the Act"), vide order dt. 5th April, 1999. The petitioners contend that the impugned orders of attachment under S. 281B of the Act are unlawful, unconstitutional, ultra vires, without authority of law, passed without due application of mind and are patently bad in law, misconceived and vitiated. It is prayed that these orders be set aside and quashed.

(2.) WE have heard learned counsel for the parties. Rule returnable after eight weeks. Respondents waive service.

(3.) IN reply, Mr. R.V. Desai, learned counsel for the Revenue, stated that the Revenue would not like to go by the valuation made by the valuer of the assessee even though he is an approved valuer. We asked learned counsel to get the two immovable properties under attachment valued by the Departmental valuer. The matter was adjourned on that day for that purpose. On the next date, Mr. Desai produced the report of the Departmental valuer. The Departmental valuer has valued the two immovable properties, viz., room No. 106, Mehta House, and flat No. 6 in Fionika at Rs. 2,66,30,000. On the face of this valuation, we asked learned counsel for the Revenue to show us the justification for continuing the attachment of the bank accounts and FDRs of the assessee which obviously would very adversely affect the running of the business of the assessee. We also asked him to inform us why the Department, on the face of the valuation report of their owner valuer, has not lifted on their own the attachment on the bank accounts and the FDRs. On the prayer of learned counsel for the Revenue, further time was granted to enable him to obtain Rs.