Court Refuses To Quash Taxman's Order Of Attachment Of Supermax Assets

Mumbai: Supermax Personal Care Ltd, leading manufacturer, supplier and exporter of shaving blades and razors, which is facing alleged tax evasion to the tune of crores of rupees, has moved the Bombay High Court to quash and set aside a provisional order of March 28, attaching its movable and immovable properties to recover taxes. The company's petition claimed the impugned order was illegal, unconstitutional and against the principles of natural justice because it was passed without giving an opportunity to hear them. The Bombay High Court, in an order last week, refused to quash the Income Tax department's order attaching movable and immovable properties of Supermax Personal Care Ltd for recovery of tax, saying it would continue. However, a division bench of justices M S Sanklecha and A K Menon, after hearing the I-T Department's counsel Charanjit Chanderpal and Supermax's counsel J D Mistry, asked the revenue department not to act on the impugned order of attachment until the company's appeal against it is decided by a superior authority of Income Tax department and for a period of three weeks thereafter. The court further directed the company to file an undertaking not to dispose of or alienate the property which are subject to attachment by the impugned order until this directive is set aside or varied. On April 12, this petition was listed for urgent relief and after hearing the parties, the high court had directed that the attachment of business receivables as listed out in the Income Tax department's impugned order of attachment of March 28 be vacated. However, the high court last week clarified in its order that the assessing officer, Commissioner, Commissioner of Income Tax (Appeal) will not be in any manner influenced by any observations made by it in its order dated April 12 or in this order (of May 3), while deciding any application/appeal of the company. "Needless to state that the same will be decided on merits," the bench said. The high court also directed that the assessing officer and the additional commissioner or commissioner of Income Tax would decide the petitioner's application expeditiously, i.e. within three weeks of the receipt thereof. According to an affidavit filed by I-T department, Supermax had purchased RCC Sales Pvt Ltd and Vidyut Metallics Pvt Ltd in a slump sale and ultimately transferred its assets outside India through six companies in six countries allegedly to evade income tax. The beneficiaries of assets thus transferred outside India are the assessee (Supermax) themselves and the net income tax payable by it is Rs 1,737 crore, the I-T department's affidavit said. .(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)

Court Refuses To Quash Taxman's Order Of Attachment Of Supermax Assets

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