Anil Kumar Gupta V. Principal Chief Commissioner of Income Tax

CWJC/5452/2020

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The case involves Anil Kumar Gupta, the petitioner, who is engaged in the food grains business and has not filed a tax return for the year 2016-17, claiming no taxable income. The Income Tax Department assessed him and demanded a tax of Rs. 10,62,286. An appeal against this assessment is pending before the Joint Commissioner of Income Tax, Patna. Meanwhile, the department withdrew Rs. 1,80,315 from the petitioner's bank accounts, which he claims is in violation of Section 226(3) of the Income Tax Act, as the appeal was still pending. The petitioner sought the court's intervention to refund the withdrawn amount with interest and to compensate for the losses suffered due to the wrongful action of the tax authorities.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 693572 (HC-PATNA)
• Appeal Type: Others
• Pronouncement Date: 25-07-2022
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: HIGH COURT
• Department Lawyers: ARCHANA SINHA
• Assessee Lawyers: UDAY SINGH
• Keywords: Appeal; Assessment; Bank withdrawal; Income Tax; Natural Justice
• Section: 226(3)

Judgement Text

"IN THE HIGH COURT OF JUDICATURE AT PATNA Civil Writ Jurisdiction Case No.5452 of 2020 ====================================================== Anil Kumar Gupta, Son of Das Narayan Gupta, R/o Tareqna Gola, Masaruhi, P.S. Masaruhi, District- Patna. ... ... Petitioner/s Versus 1. Principal Chief Commissioner of Income Tax C.R. Building, Bir Chand Patel Patna- 800001. 2. Commissioner of Income Tax, C.R. Building, Bir Chand Patel Path, Patna- 800001. 3. Joint Commissioner of Income Tax, Lok Nayak Bhawan, Dakbanglow Road, Patna- 800001. 4. Deputy Commissioner of Income Tax, Lok Nayak Bhawan, Dakbanglow Road, Patna- 800001. 5. Assistant Commissioner of Income Tax, Lok Nayak Bhawan, Dakbanglow Road, Patna -800001. 6. Income Tax Officer, Ward 4 (1) Lok Nayak Bhawan, Patna. ... ... Respondent/s ====================================================== Appearance : For the Petitioner/s : Mr. Uday Prasad Singh, Advocate For the Respondent/s : Mrs. Archana Sinha @ Archana Shahi, Advocate ====================================================== CORAM: HONOURABLE THE CHIEF JUSTICE and HONOURABLE MR. JUSTICE S. KUMAR ORAL JUDGMENT (Per: HONOURABLE THE CHIEF JUSTICE) Date : 25-07-2022 Heard learned counsel for the parties. Petitioner has prayed for the following relief(s). “That the present application is for issuance of an appropriate writ/writs, order/orders, direction/directions, The petitioner is engaged in food grains (Agriculture products) Gud) provider in local area they have no any taxable income, so that no return has been filed for the Patna High Court CWJC No.5452 of 2020 dt.25-07-2022 2/4 period 2016-17 but the Assessing Officer was duly assessed and a demand of Rs. 10,62,286 was made. Against the Assessment order petitioner preferred to file an appeal before the Joint Commissioner Appeal, Patna. The Appeal is pending before the concerned Court, the petitioner after this they were collecting some of the required document for hearing in the meantime the authority has already withdraw the Rs 1,80,315 from the Madhya Bihar Gramin Bank Masaruhi, State Bank of India Masaruhi, In the present case petitioner is suffering great loss because the authorities wrong action and in violation to the act Sec. 226(3) of the Income Tax Act. The authorities cannot retain the bank where as the appeal is pending. Thus direction may be given to refund the due amount of the petitioner with interest and petition shall also be compensated for the loss petition has suffered.” Learned counsel for the petitioner states that petitioner’s appeal is pending before the appellate authority and petitioner shall be content if a direction is issued for expeditious disposal of the same. Learned counsel for the respondents states that the appeal shall be considered and decided within a period of two months from the date of appearance of the petitioner before the Appellate Authority along with a copy of this Patna High Court CWJC No.5452 of 2020 dt.25-07-2022 3/4 order. Statement accepted and taken on record. As such, petition stands disposed of in the following terms:- (a) Petitioner shall make himself available before the Appellate Authority on 01.08.2022; (b) It shall be open for the petitioner to move an application seeking interim protection; (c) Opportunity shall be granted to the parties to place on record all essential documents and materials, if so required and desired; (d) Petitioner through learned counsel undertakes to fully cooperate and not take unnecessary adjournment; (e) The Appellate Authority shall decide the appeal on merits, in compliance of the principles of natural justice; (f) The Appellate Authority shall pass a reasoned and speaking order, within a period of two months from the date of appearance of the petitioner before the Appellate Authority; (g) Copy of the order passed by the Appellate Authority shall be supplied to the parties; Patna High Court CWJC No.5452 of 2020 dt.25-07-2022 4/4 (h) Equally, liberty reserved to the parties to take recourse to such other remedies as are otherwise available in accordance with law; (i) We are hopeful that as and when petitioner takes recourse to such remedies, as are otherwise available in law, before the appropriate forum, the same shall be dealt with, in accordance with law and with reasonable dispatch; (j) We have not expressed any opinion on merits and all issues are left open; (k) Liberty reserved to the petitioner to assail the order, before the appropriate forum, should the need so arise subsequently. The instant petition sands disposed of in the aforesaid terms. Interlocutory Application(s), if any, stands disposed of. Sujit/Ashwini (Sanjay Karol, CJ) ( S. Kumar, J) AFR/NAFR CAV DATE Uploading Date 29.07.2022 Transmission Date "