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Judgment
This relates to the MA/143/2019 filed by the Applicant/Resolution Professional to direct the Income Tax Department to withdraw the order of attachment of refund issued against the Corporate Debtor under Section 281B of the Income Tax Act, 1961, and to release the payment due (refund) of Rs.4,20,76,684/- to the Applicant.
Heard the Resolution Professional, Counsel for Income Tax Department and perused the relevant documents.
It is on record that the Income Tax Department on 04.10.2018 has passed an order of attachment of the refund, which was valid for the period of six months as per Sub-section (2) of Section 281B of the Income Tax Act, 1961, as amended from time to time. The time period of six months has expired on 03.04.2019. The Assessee/Corporate Debtor is under Liquidation. Therefore, the attachment order dated 04.10.2018 cannot be extended. However, the claim, if any, might have been filed within the stipulated time, either during the CIRP/Liquidation.
In the circumstance, the concerned Income Tax Department is directed to release the refund amounting to Rs.4,20,76,684/- to the accounts of the Assessee / Corporate Debtor viz., M/s. Surana Corporation Limited within a period of six weeks, and file the compliance report.
Accordingly, the Application stands disposed of.