M/s. Paraag Constructions and Developers and M/s. Century Joint Developments Pvt. Ltd. V. The Income Tax Officer, Ward 1(2)(1) and Commissioner of Income Tax (Appeals), National Faceless Appeal Center (NFAC)

WP/12065/2024

AI Insights

The case involves M/s. Paraag Constructions and Developers and M/s. Century Joint Developments Pvt. Ltd. as petitioners, who challenged an attachment notice issued by the Income Tax Officer, Ward 1(2)(1), Bangalore, for the Assessment Year 2020-21. The petitioners argued that the notice was issued despite an ongoing appeal against the Assessment Order dated 26.09.2022, which was still pending before the First Appellate Authority. The petitioners sought an interim relief to suspend the demand as per the Assessment Order until their appeal was decided. The court, without delving into the merits of the case, directed the appellate authority to expedite the appeal process and restrained the respondents from taking any coercive actions until the appeal is resolved.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 808309 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 25-04-2024
• Assessment Year: misc
• Laws Referred To: Articles 226 and 227 of the Constitution of India
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: M DILIP
• Assessee Lawyers: M V SESHACHALA; NAGHARISH S
• Keywords: Assessment Order; Coercive Steps; Interim orders; Pending appeal; Quash attachment notice
• Section: ITBA/RCV/S/226(3)-1/23-24/1063476008(1)

Judgement Text

" - 1 - NC: 2024:KHC:16847 WP No. 12065 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 25TH DAY OF APRIL, 2024 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO.12065 OF 2024 (T-IT) BETWEEN: 1. M/S. PARAAG CONSTRUCTIONS AND DEVELOPERS, MUNICIPAL NO.5/1, RAJA RAM MOHAN ROY ROAD, EARLIER SAMPANGI TANK ROAD, WARD NO.77, SAMPAMGI RAMNA, BANGALORE – 560 027. (REPRESENTED BY ITS PARTNER MR.SANITH V JANNU) 2. M/S. CENTURY JOINT DEVELOPMENTS PVT. LTD., NO.10/1, LAKSHMINARAYANA COMPLEX, PALACE ROAD, VASANTH NAGAR, BENGALURU – 560 052. (PARTNER OF PETITIONER NO.1) REPRESENTED BY IT PARTNER MR. SANITH V JANNU (REGISTERED PARTNERSHIP FIRM) ACT 1932. …PETITIONERS (BY SRI. M.V.SESHACHALA, SENIOR COUNSEL FOR SRI. NAGHARISH G S., ADVOCATE) Digitally signed by LEELAVATHI S R Location: HIGH COURT OF KARNATAKA - 2 - NC: 2024:KHC:16847 WP No. 12065 of 2024 AND: 1. THE INCOME TAX OFFICER, WARD 1(2)(1), BMTC BUILDING, 80 FT ROAD, 6TH BLOCK, NEAR KHB GAME VILLAGE, KORAMANGALA, BANGALORE – 560 095. 2. COMMISSIONER OF INCOME TAX (APPEALS), NATIONAL FACELESS APPEAL CENTER (NFAC), NO.412-413, I FLOOR, OPP. METRO PILLAR NO.793, DWARKA MOR, NEW DELHI – 110 059. …RESPONDENTS (BY SRI. M.DILIP, ADVOCATE) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE ATTACHMENT NOTICE DATED 27.03.24 INDIAN OVERSEAS BANK BEARING NO. ITBA/RCV/S/226(3)-1/23-24/1063476008(1) ANNEXURE - D, PASSED BY THE ASSESSING OFFICER R1 FOR A.Y. 2020-21 AND ETC., THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, THE COURT MADE THE FOLLOWING: - 3 - NC: 2024:KHC:16847 WP No. 12065 of 2024 ORDER In this petition, the petitioners seeks quashing of the attachment notice dated 27.03.2024 at Annexure-D passed by respondent No.1, Assessment Officer for the Assessment Year 2020-21 and other reliefs. 2. Heard learned Senior Counsel for the petitioners and learned counsel for the respondents. Perused the petition papers. 3. A perusal of the material on record would indicate that aggrieved by the Assessment Order dated 26.09.2022, the first petitioner have preferred an appeal, which is pending before the First Appellate Authority. It is the grievance of the petitioners that despite pendency of appeal and the request made by the petitioners to suspend the demand as per the Assessment Order, respondent No.1-Assessing Officer has not disposed of the appeal nor passed any interim orders and on the other hand he has issued the impugned attachment notice and as such, the petitioners are before this Court, by way of present petition. 4. Learned Senior Counsel for the petitioners submits that necessary directions may be issued to respondent No.2- - 4 - NC: 2024:KHC:16847 WP No. 12065 of 2024 Appellate Authority to dispose of the appeal within a stipulated time frame and till disposal of the appeal, the respondents may be directed not to take any precipitative/coercive steps against the petitioners who would undertake not to withdraw any amounts lying in the Bank Account of the petitioners. 5. Per contra, learned counsel for the respondents submits that there is no merit in the petition and the same is liable to be dismissed. 6. A perusal of the material on record will indicate that it is an undisputed fact that the appeal filed by the first petitioner is pending adjudication before respondent No.2-Appellate Authority. Under these circumstances, without expressing any opinion on the merits/de-merits of the rival contentions, I deem it appropriate to dispose of this petition directing respondent No.2-Appellate Authority to dispose of the appeal within a period of three months from the date of receipt of a copy of this order. It is further directed that till disposal of the appeal by respondent No.2-Appellate Authority, the respondents shall not take any precipitative/coercive steps against the petitioners nor withdraw any amount from the Bank Account of the petitioners pursuant to Annexure-D till - 5 - NC: 2024:KHC:16847 WP No. 12065 of 2024 disposal of the appeal. It is further directed that till disposal of the appeal by respondent No.2-Appellate Authority, the petitioners would also not withdraw any amount/money lying in their Bank Accounts. All rival contentions of the parties are kept open and no opinion is expressed on the same. Subject to aforesaid directions, petition stands disposed off. Sd/- JUDGE SMJ List No.: 1 Sl No.: 46 "