Elegant Builders and Developers V. Additional/Joint/Deputy/Asst. Commissioner of Income-Tax/Income Tax Officer National Faceless Assessment Centre and Deputy Commissioner of Income Tax Circle 7(1)(1), Bangalore and Commissioner of Income Tax (Appeals) National Faceless Appeal Centre

WP/10276/2024

AI Insights

The case involves M/s Elegant Builders and Developers, a partnership firm, represented by its partner Mr. M. Subramani, who filed a writ petition against multiple respondents including the Additional/Joint/Deputy/Asst. Commissioner of Income-Tax and other officials under the Income-Tax Act, 1961. The petitioner sought to quash several bank attachment notices issued under Section 226(3) of the Income-Tax Act, 1961, and other related notices and orders. The petitioner argued that these actions caused irreparable hardship and were pending appeal before the First Appellate Authority, who had not yet considered a stay application. The respondents, represented by the standing counsel for the Revenue, suggested that the First Appellate Authority would consider the stay application in due course.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 692024 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 16-04-2024
• Assessment Year: misc
• Laws Referred To: Income-tax Act, 1961, Constitution of India
• Result in Favour of: Partly Allowed
• Court: HIGH COURT
• Department Lawyers: E I SANMATHI
• Assessee Lawyers: SANDEEP HUILGOL
• Keywords: Faceless Appeal; Faceless assessment; Income Tax; Stay Application; Bank Attachment Notice
• Section: 144; 143(3); 274; 271 AAC(1); 226(3)

Judgement Text

" - 1 - NC: 2024:KHC:15503 WP No. 10276 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 16TH DAY OF APRIL, 2024 BEFORE THE HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO.10276 OF 2024 (T-IT) BETWEEN: M/S ELEGANT BUILDERS AND DEVELOPERS A PARTNERSHIP FIRM REPRESENTED HEREIN BY ITS PARTNER MR. M. SUBRAMANI SON OF MR MOTHULU AGED ABOUT 62 YEARS. HAVING OFFICE AT NO.34 10TH 'B' MAIN, 3RD BLOCK JAYANAGAR III BLOCK S.O. BENGALURU - 560 011. …PETITIONER (BY SRI. SANDEEP HUILGOL, ADVOCATE) AND: 1. ADDITIONAL /JOINT/DEPUTY /ASST. COMMISSIONER OF INCOME-TAX/ INCOME TAX OFFICER NATIONAL FACELESS ASSESSMENT CENTRE INCOME TAX DEPARTMENT 2ND FLOOR JAWAHARLAL NEHRU STADIUM NEW DELHI - 110 003. 2. DEPUTY COMMISSIONER OF INCOME TAX CIRCLE 7(1)(1), BANGALORE BMTC BUILDING 80 FT ROAD, 6TH BLOCK KORAMANGALA BENGALURU - 560 095. 3. COMMISSIONER OF INCOMET TAX (APPEALS) NATIONAL FACELESS APPEAL CENTRE INCOME TAX DEPARTMENT ROOM NO 245-A Digitally signed by LEELAVATHI S R Location: HIGH COURT OF KARNATAKA - 2 - NC: 2024:KHC:15503 WP No. 10276 of 2024 NORTH BLOCK NEW DELHI -110 001. ….RESPONDENTS (BY SRI. E.I.SANMATHI, ADVOCATE) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE IMPUGNED BANK ATTACHMENT NOTICE DATED 05.03.2024 BEARING DIN AND LETTER NO.ITBA/COM/F/17/2023-24/1062043528(1) ISSUED BY THE RESPONDENT NO.2 UNDER SECTION 226(3) OF THE INCOME-TAX ACT, 1961, TO FEDERAL BANK (ANNEXURE-A1) AND ETC., THIS PETITION, COMING ON FOR ORDERS, THIS DAY, THE COURT MADE THE FOLLOWING: ORDER In this petition, the petitioner seeks the following reliefs: “i) Quashing the impugned Bank Attachment notice dated 05.03.2024 bearing DIN and Letter No.ITBA/COM/F/17/2023- 24/1062043528(1) issued by the 2nd Respondent under Section 226(3) of the Income-tax Act, 1961, to Federal Bank (Annexure ‘A-1’); ii) Quashing the impugned Bank Attachment notice dated 05.03.2024 bearing ITBA/COM/F/17/2023-24/1062047668(1) issued by the 2nd Respondent under the Income-Tax Act, 1961, to Bank of Baroda (Annexure ‘A-2’); iii) Quashing the impugned Bank Attachment notice dated 05.03.2024 bearing ITBA/COM/F/17/2023-24/1062049558(1) issued by the 2nd Respondent under Section 226(3) of the Income-Tax Act, 1961, to State Bank of India (Annexure ‘A-3’); iv) Quashing the impugned Bank Attachment notice dated 05.03.2024 bearing ITBA/COM/F/17/2023-24/1062050317(1) - 3 - NC: 2024:KHC:15503 WP No. 10276 of 2024 issued by the 2nd Respondent under the Income-Tax Act, 1961, to Karur Vysya Bank (Annexure ‘A-4’); v) Quash the impugned bank attachment notice dated 05/03/2024 bearing itba/com/f/17/2023-24/1062018853(1) issued by the R2 under the Income-Tax Act, 1961, to Canara Bank (Annexure-A5); vi) Quashing the impugned Bank Attachment notice dated 05.03.2024 bearing ITBA/COM/F/17/2023-24/1062049186(1) issued by the 2nd Respondent under the Income-Tax Act, 1961, to Canara Bank (Annexure ‘A-6’); vii) Quashing the impugned letter dated 19.12.2023 bearing DIN and Letter No. ITBA/COM/F/17/2023-24/1058876858(1) issued by the 2nd Respondent under the Income-Tax Act, 1961 (Annexure ‘K’); vii) Quashing the impugned letter dated 08.01.2024 bearing DIN and Letter No.ITBA/COM/F/17/2023- 24/1059446835(1) issued by the 2nd Respondent under the Income-Tax Act, 1961 (Annexure ‘L’); ix) Quash the impugned Show Cause Notice for Penalty dated 19.04.2021 bearing DIN No.ITBA/PNL/S/271AAC(1)/2021-22/1032515562(1) issued by Respondent No. 1 under Section 274 read with Section 271 AAC(1) of the Income-Tax Act, 1961 for the subject AY (Annexure ‘D’); x) Restraining the 2nd Respondent from initiating or pursuing any proceedings to recover the demand levied vide the Assessment Order dated 19.04.2021 bearing No.ITBA/AST/S/143(3)/2021-22/1032515478(1) passed by Respondent No. 1 under Section 143(3) read with Section 144 of the Income-Tax Act, 1961 for the subject AY - 4 - NC: 2024:KHC:15503 WP No. 10276 of 2024 (Annexure ‘C-1’) till the disposal of the Petitioner’s appeal by Respondent No.3. xi) In the alternative to the above, Direct Respondent No. 3 or the concerned first appellate authority to adjudicate and dispose off Appeal No.NFAC/2017-18/10080634 vide Annexure-F1 e-filed by the petitioner vide e-acknowledgement no.324279190200821 (Annexure E-3) vide dated 20.08.2021 as expeditiously as possible in accordance with law by considering the “Project percentage completion method” under Income Computation and Disclosure Standards III and Accounting Standards VII (Annexure ‘W’ and ‘X’); (xii) Pass such order or further orders as this Hon’ble Court may deem fit in the facts and circumstances of the case, and in the interests of justice and equity.” 2. Heard learned counsel for the petitioner and learned counsel for the respondents and perused the material on record. 3. Learned counsel for the petitioner submits that aggrieved by the order dated 19.04.2021 passed by respondent No.1, the petitioner has filed a statutory appeal, which is pending before respondent No.3/First Appellate Authority. It is submitted that on 07.03.2024, the petitioner has filed the application seeking stay which has not been considered by the First Appellate Authority even till today thereby causing irreparable hardship to the petitioner on account of six Attachment orders of the Bank Accounts of the petitioner, who is before this court by way of the present petition. - 5 - NC: 2024:KHC:15503 WP No. 10276 of 2024 4. Per contra, learned standing counsel for the Revenue submits that if reasonable time is granted, the First Appellate Authority shall consider and pass appropriate orders on the stay application filed by the petitioner, in accordance with law. 5. In view of the aforesaid facts and circumstances and without expressing any opinion on the merits/demerits of the rival contentions, I deem it just and appropriate to dispose of this petition directing respondent No.3/First Appellate Authority to consider and pass appropriate orders on the stay application dated 07.03.2024 filed by the petitioner on or before 03.05.2024. Liberty is also reserved in favour of the petitioner to take recourse to such remedies as available in law including approaching this court once again after respondent No.3/First Appellate Authority passes appropriate orders as stated supra. Sd/- JUDGE AV List No.: 1 Sl No.: 38 "