VISA COMTRADE LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) This writ petition has been filed with a prayer for quashing/ setting aside the prohibitory order dated 11.11.2010 (Annexure-1) passed under Section 132(3) of the Income Tax Act, 1961 (for short, 'the Act') in respect of Current Account No.0553002100028097 of the petitioner-Company maintained with O.P. No.7-Punjab National Bank,Station Square Branch, Bhubaneswar and for declaratory relief declaring issuance of fresh warrant of authorization dated 07.01.2011 and Panchanama dated 08.01.2011 and withdrawal of Rs.12.39 crores from the aforesaid Current Bank Account of the petitioner by opposite partybank authorities is illegal and without jurisdiction. The further prayer of the petitioner is to direct opp. parties to bring back Rs.12.39 crores in the above Current Account of the petitioner in question maintained with Opposite Party No.7- Bank.

(2.) Bereft of unnecessary details the facts and circumstances giving rise to the present writ petition are that the petitioner is a Company incorporated on 9 th August 2006 under the provisions of the Companies Act, 1956 ( in short, "Companies Act") having its registered office at HUL building, 2 nd floor, 9 Shakespeare Sarani, Kolkata-700071. The petitioner-Company is an assessee under the Act, under the jurisdiction of Asst. Commissioner of Income Tax, Circle-8, Kolkata having Permanent Account No.AACCV3366R and has been assessed to income tax since 2006-07. The petitioner-Company is mainly engaged in trading of coal, coke, minerals and metals. The assessment for the assessment year 2007-08 has already been completed and the petitionerCompany has submitted its return of income tax before the Deputy Commissioner/Asst. Commissioner of Income Tax for the assessment years 2008-09, 2009-10 and 2010-11.

(3.) To carry on its business, the petitioner-Company enters into contract with the international supplier for purchase of coal, coke, minerals and metals and the terms of payment to the said supplier provide that the supply of materials is to be made through Letters of Credit issued by a Bank so that the international supplier is protected of its payment. Upon signing of the contract, the petitioner-Company through its Bank (O.P. No.7) opened issuance of Letters of Credit of 180 days on the Bank of the suppliers which are located overseas. The petitioner-Company maintains a current Account bearing No. 0553002100028097 (for short, 'the Account in question') with O.P. No.7- Punjab National Bank, Bhubaneswar and the said Account in question has been earmarked for payment of Letters of Credit due.