Basanthlal Sah, V. Income Tax Officer, Ward

WP/5062/2025

AI Insights

The case involves Basanthlal Sah, the petitioner, who challenged the attachment of his bank accounts by the Income Tax Department for recovery of dues pertaining to the Assessment Year 2021-22. The petitioner had filed an appeal and a stay application against the Assessment Order dated 23.12.2022, which were pending before the Commissioner of Income Tax (Appeals). Despite the pending applications, the Income Tax Officer proceeded to attach the petitioner's bank accounts. The petitioner sought a writ of mandamus to unfreeze his accounts and expedite the decision on his stay application. The court heard arguments from both sides and decided to give the Commissioner of Income Tax (Appeals) a deadline to resolve the stay application, thereby indirectly addressing the petitioner's request to unfreeze his accounts temporarily until a decision is made.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 752404 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 21-02-2025
• Assessment Year: misc
• Laws Referred To: Article 226 of the Constitution of India, Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: HIGH COURT
• Department Lawyers: B SAPNA REDDY
• Assessee Lawyers: A V RAGHURAM
• Keywords: Bank Account Attachment; Income Tax; Stay Application; Writ of Mandamus
• Section: 226(3)

Judgement Text

"HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) FRIDAY, THE TWENTY FIRST DAY OF FEBRUARY TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE THE ACTING CHIEF JUSTICE SUJOY PAUL AND THE HONOURABLE SMT JUSTICE RENUKA YARA WRIT PETITION NO: 5062 OF 2025 Between: Basanthlal Sah, S/o. Sri Bijay Lal Sah, aged about 48 years, Plot No. 7, D. No. 33-B to 33-1 1, IDA Jeedimetla, Subash Nagar, IDA-Jeedimetla 500055, Telangana, lndia ..,PETITIONER AND 1 lncome Tax Officer, Ward, '1 1 (4), Signature Towers, Sy. No. 6(P) of Kondapur, Sy. No. 37(P) of Kothaguda, Opp Botanical Gardens, Serilingampally (M), R.R. District, Hyderabad, Telangana 500084 Assessment Unit, lncome Tax Department, tvlinistry of Finance, Government of lndia, New Delhi. Commissioner of lncome Tax (Appeals), National Faceless Appeal Centre, Delhi. AXIS Bank Ltd., CBB Hyderabad, Rep. by its Branch Manager, D.No.6-3- 879/8, Green Lands, Begumpet, Hyderabad-s00O16. 5. AXIS Bank Ltd., Suchitra TG, Rep. by its Branch lvlana Suchitra 'X'Road, Opp. lndian Oil Bunk, Hyderabad-50005 oer, Vennelagadda Petition under Article 226 of the Constitution of lndia praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue a writ, direction or order more particularly in the nature of a writ of mandamus declaring the action of Respondent No.1 in attaching the bank accounts of the Petitioner bearing Nos. 91 9030013476236, 91802A099522739, 918020098519833 and 920030051296685 2 3 4 (i) [ 3446 ] ...RESPONDENTS maintained with Respondent Nos. 4 and 5 vide notice dated 29-01- 2025 bearing DIN No. ITBA/COIM/F/1712024-2511072666922(1) uts. 226(3) of the lncome Tax Act, 1961 for recovery of the dues pertaining to the Assessment Year 2021-22 during the pendency of the appeals and stay application before Respondent No.3 as being illegal, arbitrary, without authority of law, violative of Article 1a and 19(1Xg) of . the Constitution of lndia and violative of provisions of lncome Tax Act, 1961 and, consequently, direct Respondent No.1 to unfreeze the bank accounts listed out in impugned notice forthwith (ii) Direct Respondent No.3 to dispose of stay petition and appeal within a reasonable time as deem fit and proper in the interest of justice. Petition under Section 151 CPC praying that in the circumstanges stated in the affidavit filed in support of the petition, the High Court may be pleased to suspend the operation of Garnishee Notice dated 29-01-2025 bearing DIN No. ITBA/COM/F/1712024-2511072666922(1)attaching the bank accounts of the Petitioner bearing Nos. 919030013476236, 918020099522739, 918020098519833 and 920030051296685 for recovery of alleged dues for the AY.2021-22. Counsel for the Petitioner: SRI A.V.RAGHU RAM Counsel for the Respondent No.1 to 3: M/s. B.SAPNA REDDY, Jr. SC FOR INCOME TAX The Court made the following: ORDER lA NO: 1 OF 2025 THE HON,BLE THE ACTING CHIEF JUSTICE SUJOY PAUL AND THE HON'BLE SMT. JUSTICE RENUKA YARA IVRIT PETITION No.5O62 of 2025 ORDER (Per tlrc Hon'ble the Acting Chief Justice Suiog Paul): Heard Sri A.V. Raghu Ram, learned counsel for the petitioner and Ms. B. Sapna Reddy, learned Junior Standing Counsel for Income Tax Department, for respondent Nos. 1 to 3. 2. The singular grievance put forth by the petitioner is that against the Assessment Order dated 23.12.2022, the petitioner preferred an appeal, along with a stay application, which is pending consideration before respondent No.3. The said appeal and stay application were preferred on 20.01.2023 but till date, no orders have been passed on the said stay application. On the other hand, respondent No.i is proceeding against the petitioner and his bank account has been attached on 29.01.2025 (Annexure-P 1). 3. The singular prayer advanced is that till the petitioner's stay application is decided, he may be permitted to operate his bank account. 4. Learned Junior Standing Counsel for Income Tax Department, for respondent Nos. 1 to 3, submits that three weeks time may be granted to decide the stay application and the I I I 2 operation of bank accounts of the petitioner be made subject to final outcome of the stay application. 5. In view of aforesaid stand taken by learned counsel for the parties, we deem it proper to dispose of this petition by directing respondent No.3 to decide the stay application of the petitioner within 15 days from today. The outcome of the stay application will decide about the permission to operate the bank account by the petitioner. 6. Accordingly, this Writ Petition is disposed of. No costs 7. Learned Junior Standing Counsel for Income Tax Department, for respondent Nos. I to 3 is requested to communicate this order to the concerned authorit5z within 24 hours. Interlocutory applications, if any pending, shall also stand SD/. P. PADMANABHA ASSISTANT RE S //TRUE COPY// SECTIO FFICER EDDY TRAR To, The lncome Tax officer. Ward, 1 1 (4)' Signature Towers, Sy. No. 6(P) of h r r, ff #l.,,i x ;i il.' d :l \"l',,i:* e: i:i*ii.i\", Bahlz' I . ::l: : : : The Assessment un(' rittirn'\" 'ial-bepartmeit' Ministry of Finance' Government of lndia, New Delhi The Commissioner of ld#; Tax (Appeals), National Faceless Appeal ?fr!tL\";i?3ll'*anaser, AXls Bank Ltd', c. -BB Hvderabad' D'No'6-3-B7e/B' ciJ\"n [\"nJ., BesJmpet, Hvderabad-500016' ii;\"rj*;;h\"ir;nzg\",l nxrs b\";[ ltd., sucnitra_TG, Vennelasadda S uchitra 'x\"h;;;.'oil lnJlZn oit Bunk' Hvderabad-s0Ooss'. 6\"\"'\"# iJSFir Av nAcnu RAM', Advocate Igq.qPL 6# & iI H,r-r.'a SnPNn ilebijV, ii 5c rdn tNcl?H/lE rAx-[oPucl 5iil 66 i\" vl.. J.Sur.rrrHn, Lr. sc FoR ttlcotue rAX [oPUC] Two CD CoPies 1 2. 3. 4. E 6 7 B I BSR closed. k- HIGH COURT DATED: 2110212025 ORDER WP.No.SO62 of 2025 DISPOSING OF THE WRIT PETITION, WITHOUT COSTS CC TODAY 1 HE srAI€ ,( -) o o 21rtB zffi v (.1 ]. "