Saravana Selvarathnam Retail Private Limited Vs PCIT (Madras High Court)
The Madras High Court considered writ petitions challenging a provisional attachment order dated 16.08.2023 issued by the Income Tax Department under Section 281B of the Income Tax Act, 1961, by which immovable properties belonging to the petitioners were attached. Since a common issue arose in multiple petitions, the Court disposed of them through a common order, taking one writ petition as the lead case.
The petitioners are engaged in the wholesale and retail sale of ready-made garments, jewellery, furniture, and household articles and have been conducting business for several decades. They have been regularly filing income tax and GST returns. A search operation was conducted by the department from 01.12.2021 to 06.12.2021 at the petitioners’ business premises in T. Nagar, an incomplete construction site at Zamin Pallavaram, Coimbatore, group company premises at Madurai and Tirunelveli, and the residences of promoters and employees. During the search, the department seized loose sheets, electronic devices, and cash, and separate panchanamas were drawn.
Following the search, the department issued warrants of attachment under Section 132(9B) on 28.02.2022 covering properties of the petitioners, their group companies, and the managing director. This attachment remained in force until 27.08.2022. Thereafter, the department issued a provisional attachment order under Section 281B on 23.08.2022, which lapsed on 22.02.2023. A subsequent provisional attachment order dated 17.02.2023 was issued and remained effective until 16.08.2023. On the same day, the department issued a fresh provisional attachment order under Section 281B attaching the same properties. This fourth attachment order was challenged in the present writ petitions.
