In relief to realtor G Square, Madras HC dismisses IT dept order attaching its immovable properties as 'infructuous'

CHENNAI: The Madras High Court held that the provisional order of the Income Tax (IT) department attaching immovable properties of the realtor giant G Square is infructuous as the provision binding the attachment expired.

Highlighting that as per section 281B of the Income Tax Act, 1961, the time limit of the attachment order has expired and the IT failed to extend the attachment period, Justice Krishnan Ramasamy wrote the order issued against G Square became infructuous and does not survive.

G Square Realtors Private Limited moved a batch of petitions seeking to quash the attachment order of IT and declare it as illegal and arbitrary in nature.

Senior counsel PH Arvindh Pandian appearing for the petitioner submitted that the High Court has already issued an interim order in favour of G Square by staying the attachment. Section 218B of the IT act empowers the respondent only to issue the attachment order for six months, as the order was issued in January it has expired and automatically ceased to have any effect, he added. Further, the senior counsel sought the court to issue an appropriate order.

Senior standing counsel AP Srinivas for IT sought to grant liberty to take appropriate steps to pass appropriate orders to extend the attachment order under section 281B (2) of the IT Act.

However, the judge refused to accept the IT department’s request as it failed to extend the time limit validating the attachment order.