Pyramid Saimiras chairman and managing director PS Saminathan has drawn hopes of early lifting of its bank attachment after Madras HC made remarks that the Income Tax department had acted in haste.
The High Court has observed that attaching bank accounts before finalising the actual tax due amounted to putting the cart before the horse. As a result, has drawn hopes of early lifting of its bank attachment
The Court on Monday directed the I-T department to dispose of the representation dated 9th March from the company about its tax liability. It also asked the department to find a fair solution on the extent to which it should attach the companys receivables and theatre deposits.
An order copy of the hearing, made available on Wednesday, spells out the tough stance taken by the Court on the issue. The Judge observed that, The respondents (I-T department) should bear in mind that they cannot put the cart before the horse, in a reference to the I-T departments attachment of accounts without finalising assessment and issuing a demand.
The I-T department had earlier attached PSTLs accounts totalling almost Rs 249 crore for non-payment of complete self-assessment tax to the tune of Rs 26 crore, which the company denied. Consequently, PSTL had filed a writ petition seeking to get an order that would release its accounts.
PSTL said that receivables worth Rs 249 crore had been affected by the attachment process whereas the departments claim as per companys own original return was only Rs 26 crore.