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New attactment isn't justified if value of asset is already more than tax demand
New attactment isn't justified if value of asset is already more than tax demand
Assessee was having liability of Rs. 4.5 crores with which commissioner has attached his immovable property of worth Rs. 5 crores U/S 45. Commissioner also provisionally attached bank accounts of assessee garnishing notice to make payment from his account. Assessee filed writ to quash such demand. HC held that department can't attach new properties if it already attached assets having value more than the tax demand.Thus, demand was quashed.-007544
1. Assessing Authority calculated cumulative liability of old concerns of assessee under VAT Act on presumptive basis at Rs. 4.50 crores.
2. Commissioner by an order attached immovable property of assessee worth Rs. 5 crores under section 45 provisionally.
3. Commissioner also provisionally attached bank accounts of assessee and further issued garnishee notice under section 44 directing bank of assessee to make payment from bank account of assessee.
4. Assessee filed writ to quash such demand.
5. HELD- Yes, demand needs to be quashed since department can't attach new properties if it already attached assets having value more than the tax demand. [In favour of assessee]
Case Reference- Vishwanath Realtor v. State of Gujarat
(HIGH COURT OF GUJARAT)
[2015] 58 taxmann.com 270 (Gujarat)
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