Facts of the Case

The petitioner company approached the Delhi High Court challenging attachment orders issued by the Tax Recovery Officer. During the hearing, the Tax Recovery Officer, Mr. K.K. Dureja, informed the Court that if the petitioner filed an affidavit confirming that:

  1. The petitioner had no dealings with M/s Neva Finance & Leasing Pvt. Ltd., and
  2. No amount was due from the said company to the petitioner,

the impugned attachment orders would be withdrawn.

The Director of the petitioner company, Mr. Sameer Gool, who was present before the Court, agreed to file the required affidavit before the Tax Recovery Officer on the same day.

Issues Involved

  1. Whether the attachment orders could continue when the petitioner claimed that it had no business or financial dealings with M/s Neva Finance & Leasing Pvt. Ltd.
  2. Whether withdrawal of attachment orders was justified upon filing of an affidavit denying any outstanding dues or relationship with the concerned company.
  3. Whether the writ petition required adjudication after the Revenue agreed to withdraw the attachment upon verification through an affidavit.

Petitioner’s Arguments

  • The petitioner disputed the basis of the attachment orders.
  • It maintained that it had no dealings with M/s Neva Finance & Leasing Pvt. Ltd.
  • The petitioner agreed to place the position on record through a sworn affidavit before the Tax Recovery Officer.
  • The petitioner sought removal of the attachment orders affecting its interests.

Respondent’s Arguments

  • The Tax Recovery Officer submitted before the Court that the Department would withdraw the attachment orders if the petitioner filed an affidavit stating:
    • It had no dealings with M/s Neva Finance & Leasing Pvt. Ltd.; and
    • No amount was payable by the said company to the petitioner.
  • The Department accepted that upon filing of such affidavit, continuation of the attachment orders would not be necessary.

Court Order / Findings

The Delhi High Court recorded the statement of the Tax Recovery Officer and the undertaking of the petitioner company.

The Court observed that:

  • The petitioner would file the required affidavit before the Tax Recovery Officer during the course of the day.
  • Upon filing of the affidavit, the Tax Recovery Officer would withdraw the attachment orders.
  • In view of the consensus between the parties, no further adjudication was required.

Accordingly, the writ petition was disposed of in these terms.

Important Clarification

  • The Court did not decide any substantive question of tax liability.
  • The matter was resolved through an undertaking and administrative verification.
  • Withdrawal of attachment was made conditional upon filing of an affidavit confirming absence of dealings and outstanding dues with M/s Neva Finance & Leasing Pvt. Ltd.
  • The order demonstrates the Court's approach in resolving recovery disputes where factual clarification removes the basis for attachment proceedings.

Sections Involved

The order does not specifically mention the statutory provisions. However, the dispute arose from Income Tax Recovery Proceedings involving attachment orders issued by the Tax Recovery Officer under the recovery mechanism prescribed in the Income-tax Act, 1961 and the relevant provisions governing tax recovery and attachment.

Link to download the order –https://delhihighcourt.nic.in/app/case_number_pdf/2000:DHC:11379-DB/65306042000CW14522000_113817.pdf?utm_source=chatgpt.com

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