- (1.) We have heard Sri Shakeel Ahmad for the petitioner. Sri Govind Krishna appears for the Income-tax Department. The petitioner company, dealing with the business of investment, financing and consultancy, filed its return of income for the Assessment Year 2007-08 on 31.10.2007, under Section 139(1) of the Income-tax Act (the Act). The admitted tax amounting to Rs. 15,67,798/- was not deposited under self-assessment. An intimation/order dated 28.11.2008, passed on 28.11.2008 under Section 143(1) of the Act, was served on the petitioner on 29.11.2008, creating tax liability on the petitioner company amounting to Rs. 19,62,491/-.
(2.) It is stated in paragraph 7 onwards in the writ petition that the petitioner's business slowed down in subsequent years, and there was scarcity of funds for depositing the demanded tax but the petitioner started making payments towards demanded tax even before intimation/order dated 28.11.2008. It had deposited Rs. 25,000/- on 24.11.2008, and Rs. 1,80,000/- during the period commencing from 24.11.2008 to 12.12.2008. At this stage, an order was passed under Section 226(3) of the Act, attaching the bank account of the petitioner in Bank of Baroda, Birhana Road Branch, Kanpur.
(3.) It is submitted that the order under Section 226(3) of the Act was passed within two days of the intimation dated 28.11.2008. The petitioner requested for allowing four quarterly installments by an application dated 02.12.2008, which was not disposed of. It is stated that since the profits were worked out on the basis of book profits under Sections 115JAA and 115JB of the Act, the petitioner was entitled to credit of the tax to be paid upto next seven years.;