Flipkart wins court case against Uttar Pradesh government
Allahabad: The Allahabad High Court on Tuesday imposed a cost of Rs 2,lakhs on commercial tax department for wrongly attaching the bank account of Flipkart and withdrawing Rs 49.8 crores from it without any authority of law.
The court has also directed the department refund the amount along with interest to the flipkart.
The Bench comprising justice Tarun Agarwala and justice VK Mishra passed the order while hearing a petition filed by flipkart challenging assessment order of commercial tax department and seizure of its bank account.
According to petitioner, tax department never served summons to the petitioner. It's office was shifted from Noida to Ghaziabad in 2013 but tax department officials despite its knowledge, affixed the notices on its old offices and later seized it's bank account and wrongly withdrew Rs 49.8 crores in the name of tax recovery.
The Bench held that summon was never served upon the petitioner and seizure of its bank account was illegal. Hence tax authorities must pay cost for its wrong and illegal Act.