Case Law Details
M.K. Rajendran Pillai Vs ACIT (Madras High Court)
Introduction: In the recent legal battle of M.K. Rajendran Pillai against the Assistant Commissioner of Income Tax (ACIT), the Madras High Court has delivered a significant verdict. The petitioner sought relief through a writ of mandamus, urging the court to lift the attachment on his immovable properties. This article delves into the case background, arguments, and the court’s decisive order, unraveling the legal intricacies.
Detailed Analysis: The petitioner, represented by learned counsel, contended that the Income Tax Appellate Tribunal, in its order dated 20.01.2023, had set aside the assessment orders and additions for the years 2012-13 to 2018-19. Consequently, the matter was remanded to the assessing authority for fresh assessment orders. Post the remand, the assessing authority nullified the earlier additions, leading to a substantial refund of Rs.10,77,61,574/- for the said assessment years.
Challenging the attachment order on his properties, the petitioner argued that with no remaining tax liability, the continued attachment lacked justification. The respondents countered, citing the provisional nature of the attachment, valid for six months from the order date, extendable up to two years or sixty days from the assessment order date. According to the respondents, the last attachment on 30.12.2019 had expired, rendering the attachment void ab initio.
Accepting the respondents’ stance, the court disposed of the writ petition, emphasizing that no attachment exists on the petitioner’s properties. The respondents’ statement clarified the automatic termination of the attachment, allowing the petitioner unrestricted control over his properties.
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