RANJITSINH NARSINH VAGHELA V. INCOME TAX OFFICER WARD 3, GANDHINAGAR

SCA/15531/2021

AI Insights

In this case, Ranjitsinh Narsinh Vaghela, a retired government servant, filed a writ application under Article 226 of the Constitution of India against the Income Tax Officer, Ward 3, Gandhinagar. The petitioner sought relief from the High Court to stay a demand arising from a notice dated 17.02.2020 for an amount of Rs. 6,19,27,000, and to quash an attachment order dated 28.02.2020 on his pension bank account and other accounts. The petitioner had not filed a return of income for the assessment year 2012-13, claiming that his income did not exceed the threshold limit. Subsequently, the Assessing Officer reopened the case and issued a notice based on information received from the DDIT (Investigation), leading to an assessment order that included concealed income and issued demand and penalty notices. The petitioner challenged the assessment order and the subsequent attachment of his bank accounts, including a pension account. The High Court's decision focused on ensuring that the petitioner's application for release of the attached pension account was decided promptly by the Assessing Officer and allowed the petitioner to seek a stay of demand from the CIT(A).

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 748954 (HC-GUJARAT)
• Appeal Type: Others
• Pronouncement Date: 15-02-2022
• Assessment Year: misc
• Laws Referred To: Constitution of India, Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: M R BHATT; KARAN SANGHANI; MAITHILI MEHTA
• Assessee Lawyers: HARDIK VORA
• Keywords: Assessment Year; Attachment Order; Concealment of income; Income Tax; Pension account; Stay of demand; Writ of Certiorari
• Section: 147; 148; 144; 271(1)(c); 139(1); 274; 234B; 234A; 234C; 234D; 226

Judgement Text

"C/SCA/15531/2021 ORDER DATED: 15/02/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/SPECIAL CIVIL APPLICATION NO. 15531 of 2021 ========================================================== RANJITSINH NARSINH VAGHELA Versus INCOME TAX OFFICER WARD 3, GANDHINAGAR ========================================================== Appearance: MR. HARDIK V VORA(7123) for the Petitioner(s) No. 1 MR MR BHATT SENIOR COUNSEL WITH MR KARAN SANGHANI, ADVOCATE FOR M R BHATT & CO.(5953) for the Respondent(s) No. 1,2 MS MAITHILI D MEHTA(3206) for the Respondent(s) No. 1,2 ========================================================== CORAM: HONOURABLE MR. JUSTICE J.B.PARDIWALA and HONOURABLE MS. JUSTICE NISHA M. THAKORE Date : 15/02/2022 ORAL ORDER (PER : HONOURABLE MR. JUSTICE J.B.PARDIWALA) 1 B y t h i s w r i t a p p l i c a t i o n u n d e r A r t i c l e 2 2 6 o f t h e C o n s t i t u t i o n o f I n d i a , t h e w r i t a p p l i c a n t – a n a s s e s s e e h a s p r a y e d f o r t h e f o l l o w i n g r e l i e f s : “ a . A w r i t o f c e r t i o r a r i o r a n y o t h e r w r i t , o r d e r o r d i r e c t i o n i n t h e n a t u r e o f c e r t i o r a r i a l l o w i n g s t a y o f d e m a n d a r i s i n g o u t o f n o t i c e d a t e d 1 7 . 0 2 . 2 0 2 0 f o r a m o u n t o f R s . 6 , 1 9 , 2 7 , 0 0 0 / - ; b . A w r i t o f c e r t i o r a r i o r a n y o t h e r w r i t , o r d e r o r d i r e c t i o n i n t h e n a t u r e o f c e r t i o r a r i q u a s h i n g t h e a t t a c h m e n t o r d e r d a t e d 2 8 . 0 2 . 2 0 2 0 a t t a c h i n g p e n s i o n b a n k a c c o u n t n o . 0 1 6 9 0 1 0 0 0 0 6 1 9 6 w i t h B a n k o f B a r o d a , B a n k o f a c c o u n t n o . 6 0 7 0 3 6 0 4 9 8 1 5 w i t h A h m e d a b a d D i s t . C o - O p . B a n k a n d a c c o u n t n o . 2 0 2 0 1 0 1 1 0 0 1 6 5 0 2 w i t h B a n k o f I n d i a a n d t o i n s t r u c t r e s p o n d e n t s t o r e l e a s e t h e b a n k a c c o u n t . c . P e n d i n g t h e a d m i s s i o n , h e a r i n g a n d f i n a l d i s p o s a l o f t h i s p e t i t i o n , t o i n s t r u c t r e s p o n d e n t s t o r e l e a s e t h e b a n k a c c o u n t s ; d . P a s s a n y o t h e r o r d e r ( s ) a s t h i s H o n ’ b l e C o u r t m a y d e e d f i t a n d m o r e a p p r o p r i a t e i n o r d e r t o g r a n t i n t e r i m r e l i e f t o t h e p e t i t i o n e r ; Page 1 of 4 C/SCA/15531/2021 ORDER DATED: 15/02/2022 e . A n y o t h e r a n d f u r t h e r r e l i e f d e e m e d j u s t a n d p r o p e r b e g r a n t e d i n t h e i n t e r e s t o f j u s t i c e ; f . T o p r o v i d e f o r t h e c o s t o f t h i s p e t i t i o n . ” 2 We h a v e h e a r d Mr . H a r d i k V o r a , t h e l e a r n e d c o u n s e l a p p e a r i n g f o r t h e w r i t a p p l i c a n t a n d Mr . M. R . B h a t t , t h e l e a r n e d S e n i o r C o u n s e l a s s i s t e d b y Mr . K a r a n S a n g h a n i , t h e l e a r n e d a d v o c a t e a p p e a r i n g f o r t h e R e v e n u e . 3 T h e w r i t a p p l i c a n t h e r e i n i s a r e t i r e d g o v e r n m e n t s e r v a n t . I t a p p e a r s t h a t f o r t h e a s s e s s m e n t y e a r 2 0 1 2 - 1 3 , n o r e t u r n o f i n c o m e w a s f i l e d u n d e r S e c t i o n 1 3 9 ( 1 ) o f t h e A c t o n t h e p r e m i s e t h a t t h e i n c o m e h a d n o t e x c e e d e d t h e t h r e s h o l d l i m i t w h i c h m a k e s f i l i n g o f t h e r e t u r n m a n d a t o r y . 4 T h e c a s e w a s r e o p e n e d u n d e r S e c t i o n 1 4 7 o f t h e A c t b y i s s u i n g a n o t i c e u n d e r S e c t i o n 1 4 8 o f t h e A c t d a t e d 2 8 t h Ma r c h 2 0 1 9 o n t h e b a s i s o f i n f o r m a t i o n r e c e i v e d f r o m t h e D D I T ( I n v e s t i g a t i o n ) , U n i t - 1 ( 3 ) , A h m e d a b a d t h a t t h e a s s e s s e e h a s r e c e i v e d c a s h a m o u n t i n g t o R s . 4 , 3 2 , 3 6 , 0 0 0 / - d u r i n g t h e F . Y . 2 0 1 1 - 1 2 . 5 T h e A s s e s s i n g O f f i c e r p r o c e e d e d t o p a s s t h e a s s e s s m e n t o r d e r d a t e d 3 0 t h D e c e m b e r 2 0 1 9 u n d e r S e c t i o n 1 4 4 r e a d w i t h S e c t i o n 1 4 7 o f t h e A c t f o r t h e a s s e s s m e n t y e a r 2 0 1 2 - 1 3 . T h e o p e r a t i v e p a r t o f t h e a s s e s s m e n t o r d e r r e a d s t h u s : “ 3 . 1 6 S u b j e c t t o t h e a b o v e r e m a r k s , t h e t o t a l i n c o m e o f t h e a s s e s s e e i s d e t e r m i n e d o n t h e b a s i s o f s t a t e m e n t o f i n c o m e f i l e d a l o n g w i t h R O I d t . 2 2 / 0 5 / 2 0 1 9 a n d a s d i s c u s s e d a b o v e , a s u n d e r : I n c o m e a s p e r s t a t e m e n t o f i n c o m e R s . 1 , 4 0 , 7 6 4 / - A d d : B a n k i n t e r e s t o n F D s – a s d i s c u s s e d a b o v eR s . 7 , 1 1 , 3 7 , 9 8 6 / - A s s e s s e d I n c o m e R s . 7 , 1 2 , 7 8 , 7 5 0 / - = = = = = = = = Page 2 of 4 C/SCA/15531/2021 ORDER DATED: 15/02/2022 A s s e s s e d u n d e r S e c t i o n 1 4 4 r . w . s . 1 4 7 o f t h e I n c o m e T a x . C a c u l a t e t a x a c c o r d i n g l y a n d g i v e c r e d i t f o r p r e p a i d t a x e s . C h a r g e s i n t e r e s t u / s . 2 3 4 A , 2 3 4 B , 2 3 4 C a n d 2 3 4 D o f t h e I . T . A c t a s t h e c a s e m a y b e . I s s u e d d e m a n d n o t i c e a n d c h a l l a n . I s s u e d p e n a l t y n o t i c e u / s . 2 7 4 r . w . s . 2 7 1 ( 1 ) ( c ) o f t h e I . T . A c t f o r c o n c e a l m e n t o f i n c o m e . ” 6 T h e a f o r e s a i d o r d e r o f a s s e s s m e n t p a s s e d b y t h e A s s e s s i n g O f f i c e r h a s b e e n c h a l l e n g e d b y t h e w r i t a p p l i c a n t b y f i l i n g a n a p p e a l u n d e r S e c t i o n 2 4 6 ( A ) o f t h e A c t b e f o r e t h e C o m m i s s i o n e r o f I n c o m e T a x . 7 H o w e v e r , i t a p p e a r s t h a t t h e A s s e s s i n g O f f i c e r p r o c e e d e d t o p a s s t h r e e o r d e r s o f a t t a c h m e n t o f t h e b a n k a c c o u n t s i n e x e r c i s e o f p o w e r s u n d e r S u b - s e c t i o n ( 3 ) o f S e c t i o n 2 2 6 o f t h e A c t . O n e o f t h e b a n k a c c o u n t s a t t a c h e d b y t h e A s s e s s i n g O f f i c e r i s a p e n s i o n a c c o u n t . T h e w r i t a p p l i c a n t h a s p r e f e r r e d a n a p p l i c a t i o n d a t e d 1 2 t h A p r i l 2 0 2 1 a d d r e s s e d t o t h e A s s e s s i n g O f f i c e r f o r r e l e a s i n g t h e p e n s i o n a c c o u n t f r o m a t t a c h m e n t . T h e a p p l i c a t i o n f i l e d b y t h e w r i t a p p l i c a n t i s a t p a g e : 1 0 2 o f t h e p a p e r b o o k . 8 I t i s n o t i n d i s p u t e t h a t t h e a f o r e s a i d a p p l i c a t i o n i s y e t t o b e l o o k e d i n t o b y t h e A s s e s s i n g O f f i c e r . 9 Wh a t e m e r g e s a s o n d a t e i s t h a t t h e r e i s a n a p p e a l b e f o r e t h e C I T a g a i n s t t h e a s s e s s m e n t o r d e r a n d t h e r e i s a n a p p l i c a t i o n f i l e d b y t h e w r i t a p p l i c a n t a d d r e s s e d t o t h e A s s e s s i n g O f f i c e r f o r r e l e a s e o f t h e p e n s i o n a c c o u n t . 1 0 We d i s p o s e o f t h i s w r i t a p p l i c a t i o n w i t h a d i r e c t i o n t o t h e j u r i s d i c t i o n a l A s s e s s i n g O f f i c e r t o t a k e u p t h e a p p l i c a t i o n f i l e d b y t h e w r i t a p p l i c a n t d a t e d 1 2 t h A p r i l 2 0 2 1 a n d d e c i d e t h e s a m e i n a c c o r d a n c e w i t h l a w w i t h i n a p e r i o d o f t w o w e e k s f r o m t h e d a t e o f r e c e i p t o f t h e Page 3 of 4 C/SCA/15531/2021 ORDER DATED: 15/02/2022 w r i t o f t h i s o r d e r . 1 1 We a l s o p e r m i t t h e w r i t a p p l i c a n t t o f i l e a n a p p r o p r i a t e a p p l i c a t i o n b e f o r e t h e C I T ( A ) f o r t h e p u r p o s e o f s t a y o f d e m a n d . I t i s n o w w e l l s e t t l e d t h a t t h e C I T ( A ) h a s a n i n h e r e n t p o w e r a s a n a p p e l l a t e a u t h o r i t y t o p a s s a n a p p r o p r i a t e i n t e r i m o r d e r p e n d i n g t h e f i n a l d i s p o s a l o f t h e a p p e a l i n c l u d i n g s t a y o f r e c o v e r y . I f a n y s u c h a p p l i c a t i o n i s f i l e d b y t h e w r i t a p p l i c a n t , t h e C I T ( A ) s h a l l t a k e i t u p f o r h e a r i n g e x p e d i t i o u s l y a n d p a s s a n a p p r o p r i a t e o r d e r . 1 2 I t g o e s w i t h o u t s a y i n g t h a t u l t i m a t e l y , i f t h e C I T ( A ) d e e m s f i t t o g r a n t a n y r e l i e f t o t h e w r i t a p p l i c a n t s u b j e c t t o a n y c o n d i t i o n p e n d i n g t h e a p p e a l , t h e o r d e r s o f a t t a c h m e n t o f t h e t h r e e b a n k a c c o u n t s w o u l d a u t o m a t i c a l l y n o t r e m a i n i n o p e r a t i o n . 1 3 Wi t h t h e a f o r e s a i d t h i s w r i t a p p l i c a t i o n s t a n d s d i s p o s e d o f . (J. B. PARDIWALA, J) (NISHA M. THAKORE,J) CHANDRESH Page 4 of 4 "