C/SCA/7005/2020 ORDER IN HIGH COURT OF GUJARAT AT AHMEDABAD R/SPECIAL CIVIL APPLICATION NO. 7005 of 2020 BEST OASIS LTD. Versus DDIT / ADIT (INV.) Appearance: MS VAIBHAVI K PARIKH(3238) for Petitioner(s) No. 1 MR MANISH BHATT, LD SR. COUNSEL WITH MRS MAUNA M BHATT(174) for Respondent(s) No. 1 CORAM: HONOURABLE MR.JUSTICE J.B.PARDIWALA and HONOURABLE MR. JUSTICE ILESH J. VORA Date : 12/05/2020 ORAL ORDER (PER : HONOURABLE MR.JUSTICE J.B.PARDIWALA) 1. By this writ application under Article 226 of Constitution of India, writ applicant, Company registered under laws of Hong Kong and wholly owned subsidiary of Priya Blue Industries Pvt. Ltd. , Company incorporated and registered under laws of India, has prayed for following reliefs: (a) quash impugned order passed under Section 132(9B) of Act (ANNEXURE ); (b) pending admission, hearing and final disposal of this petition, direct Respondent to stay implementation and operation of impugned order under section 132(9B) (ANNEXURE ); (c) any other and further relief deemed just and proper be granted in interest of justice; (d) to provide for cost of this petition Page 1 of 4 Downloaded on : Wed May 13 08:39:54 IST 2020 C/SCA/7005/2020 ORDER 2. We need not go into merits of matter, as writ application can be disposed of on basis of consensus arrived at between writ applicant and Income Tax Department. However, with view to dispose of matter, we incorporate few relevant facts: 2.1 It appears that search action under Section 132 of Income Tax Act, 1961 (hereinafter referred to as 'the Act' for short) was undertaken in Priya Blue group of Bhavnagar and connected entities on 19.11.2019. Later, search action under Section 132 of Act was carried out in case of writ applicant also on 9.12.2019. respondent passed order under Section 132 (9B) of Act dated 10.12.2019, whereby, Fixed Deposit Receipts (FDRs for short) of two Banks namely (i) Bank of India and (ii) Indian Overseas Bank, aggregating to USD 9.02 million (approximately Rs.70 crores) came to be provisionally attached and order of such provisional attachment was served upon writ applicant vide letter dated 13.12.2019. 2.2 It is aforesaid action on part of department, which is made subject matter of challenge in present writ application. 3. Department has filed affidavit-in-reply pointing out various aspects of matter. According to department such action of provisional attachment of FDRs has been taken with view to protect interest of revenue. In short, case of Department is that writ applicant is liable to pay particular amount towards tax in India. With view to secure such amount liable to be paid by way of tax, department had to pass impugned order of provisional attachment of FDRs of two banks referred to above. 4. Mr. Tushar Hemani, learned senior counsel appearing for writ applicant has put forward suggestion to put end to this litigation. Page 2 of 4 Downloaded on : Wed May 13 08:39:54 IST 2020 C/SCA/7005/2020 ORDER According to Mr. Hemani, his suggestion or arrangement would protect interest of both, writ applicant as well as department. According to suggestion of Mr. Hemani, provisional attachment of FDRs of two banks referred to above, may continue but at same time, writ applicant may be permitted to carry on operation with respect to bank accounts. 5. In response to aforesaid suggestion put forward by Mr. Hemani, Mr. M.R. Bhatt, learned Senior Counsel assisted by Ms. Mauna Bhatt, learned Senior Standing counsel for department, after obtaining necessary instructions from authority concerned, submitted that if writ applicant is permitted to operate bank accounts, department should not have any objection. However, Mr. Bhatt, clarifies that at any cost, provisional attachment over FDRs shall continue. Mr. Bhatt further clarifies that it shall be open for department to initiate fresh action also in future in accordance with law. 6. Having heard learned counsel appearing for parties and having considered suggestions put forward by Mr. Hemani as well as by Mr. Manish Bhatt, learned Senior Counsel for respondent, we dispose of this writ application with following directions : (i) impugned order of provisional attachment dated 10.12.2019 shall continue to operate in accordance with law. (ii) As bank accounts have not been freezed or attached by department, it shall be open for writ applicant to operate such bank accounts / limits in accordance with law. (iii) If department wants to initiate any fresh action including action of further provisional attachment, it Page 3 of 4 Downloaded on : Wed May 13 08:39:54 IST 2020 C/SCA/7005/2020 ORDER shall be open for them to do so in accordance with law. 7. With aforesaid directions, this writ application stands disposed of. It shall be open for writ applicant to inform concerned department of order passed by this Court by E-mail. Registry shall furnish one copy of this order to Ms. Mauna Bhatt, learned Senior Standing Counsel appearing for department. Mr. Hemani, learned counsel is requested to forward one copy of this order to Ms. Mauna Bhatt by E-mail. (J. B. PARDIWALA, J) (ILESH J. VORA,J) P. SUBRAHMANYAM Page 4 of 4 Downloaded on : Wed May 13 08:39:54 IST 2020 Best Oasis Ltd. v. DDIT / ADIT (Inv.)