Meridian Construction India Limited V. The Principal Commissioner of Income Tax

CWJC/3225/2023

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Meridian Construction India Limited filed a writ petition against the Income Tax Department's action of attaching its bank account under Section 226(3) of the Income Tax Act, 1961, while an appeal was pending before the Commissioner of Income Tax (Appeals). The petitioner argued that the ongoing appeal should prevent any recovery actions. The Income Tax Department countered by highlighting the petitioner's history of defaults and non-cooperation in previous hearings. The court decided to allow the attachment to continue but ordered that no recovery should be made until the appeal is resolved, provided the petitioner cooperates with the proceedings.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 685783 (HC-PATNA)
• Appeal Type: Others
• Pronouncement Date: 03-04-2023
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: HIGH COURT
• Department Lawyers: ARCHANA SINHA; SHEELA SHARMA; SHIVENDRA ROY
• Assessee Lawyers: AJAY RASTOGI; PARIJAT SAURAV
• Keywords: Appeal Pending; Attachment; Income Tax; Recovery; Writ petition
• Section: 226(3)

Judgement Text

"IN THE HIGH COURT OF JUDICATURE AT PATNA Civil Writ Jurisdiction Case No.3225 of 2023 ====================================================== Meridian Construction India Limited a Company registered under the Companies Act, 1956 having its office at Sukriti Apartment, S P Verma Road, Police Station- Gandhi Maidan, District- Patna, through its Chief Managing Director Syad Abu Dojana, male, aged about 58 years, Male, son of Late S. Rahmatullah, resident of 322, Haroon Nagar, Sector 2, Post Office and Police Station- Phulwarisharif, District- Patna. ... ... Petitioner Versus 1. The Principal Commissioner of Income Tax Patna, Bihar. 2. The Commissioner of Income Tax, Appeal CIT(A), Patna-3. 3. The Assistant Commissioner of Income Tax, DCIT/ACIT, Central Circle 3, Patna. 4. ICICI Bank Limited, ICICI Bank Towers, Bandra Kurla Complex, Bandra East, Mumbai 400051, Maharashtra. 5. ICICI Bank, BSFC Building, Frazer Road, Patna. 6. ICICI Bank Limited, 7th Floor, IDBI Tower, WTC Complex, Cuffe Parade, Mumbai 400005, Maharashtra. 7. IDBI Bank, Kashi Place Complex Branch, Daak Bunglow Road, Opposite Heera Place, Patna. 8. INDUSIND Bank Limited, 8th Floor, Tower 1, One Indiabulls Centre, 841, S.B. Marg, Elphinstone Road, Mumbai 400013, Maharashtra. 9. INDUSIND Bank Limited, Anishabad Branch, Patna. ... ... Respondents ====================================================== Appearance : For the Petitioner : Mr. Ajay Kumar Rastogi, Sr. Advocate with Mr. Parijat Saurav, Advocate For the Income Tax Department : Ms. Archana Sinha @ Archana Shahi, Sr. S.C., Income Tax with For the Respondent Nos. 6 and 7 : Ms. Sheela Sharma with Mr. Shivendra Kumar Roy, Advocates ====================================================== CORAM: HONOURABLE THE CHIEF JUSTICE and HONOURABLE MR. JUSTICE MADHURESH PRASAD ORAL ORDER (Per: HONOURABLE THE CHIEF JUSTICE) 4 03-04-2023 Heard learned senior counsel for the petitioner, Patna High Court CWJC No.3225 of 2023(4) dt.03-04-2023 2/3 learned counsel for the Income Tax Department and learned counsel for the respondent Nos 6 and 7. 2. The petitioner herein has filed a writ petition against the attachment made by the Income Tax Department under Section 226 (3) of the Income Tax Act, 1961 ( for brevity ‘Act of 1961’) while an appeal is pending before the Commissioner of Income Tax (Appeals) (Respondent No.2). 3. The learned senior counsel appearing for the petitioner submits that the matter is being heard by the CIT(Appeals) and, even today, the hearing is proceeded with. The only request is that there may be no recovery made from the account of the petitioner, when the matter is pending before the CIT (Appeals). 4. The learned senior Standing Counsel, Income Tax Department, submits that there is a huge demand against the petitioner and that he is a defaulter in a number of past years. After filing the appeal, there was consistent default in appearance before the CIT (Appeals), which resulted in the matter being dragged on. 5. Considering the overall circumstances, we are of the opinion that the attachment can be continued, but no recovery be effected till the matter is disposed of by the CIT Patna High Court CWJC No.3225 of 2023(4) dt.03-04-2023 3/3 (Appeals), subject to the condition that the petitioner will cooperate in the hearing. We also direct that Respondent No.2, on completion of the hearing, shall pass orders within a period of three (03) months from the date of last hearing. 6. The writ application stands disposed of. Shyambihari/ Raj Kishore/- (K. Vinod Chandran, CJ) (Madhuresh Prasad, J) U "