Sivakumar V. The Income Tax Officer

WP(MD)/18542/2023

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In this case, the petitioner, Sivakumar, sought a writ of mandamus under Article 226 of the Constitution of India to direct the third respondent, the Sub Registrar, to lift an attachment order on his property. The attachment was initially imposed by the Income Tax Officer (first respondent) under Section 281B of the Income Tax Act, 1961, with the approval of the Principal Commissioner of Income Tax (second respondent), due to non-payment of assessed income tax for the years 2015-2016 and 2016-2017. The petitioner argued that selling the property would enable him to pay the due taxes, and he was willing to submit an undertaking to this effect. The court's decision was based on the assurance that the petitioner would pay the tax dues immediately after selling the property, as guaranteed by the affidavit or indemnity bond.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 672368 (HC-MADURAI)
• Appeal Type: Others
• Pronouncement Date: 21-08-2023
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: N DILIP KUMAR; R SURESH KUMAR
• Assessee Lawyers: HENRI TIPHAGNE
• Keywords: Income Tax; Indemnity bond; Property Attachment; Tax dues; Writ of Mandamus
• Section: 226; 281B

Judgement Text

"W.P.(MD)No.18542 of 2023 BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT DATED: 21.08.2023 CORAM THE HONOURABLE MRS.JUSTICE S.SRIMATHY W.P.(MD)No.18542 of 2023 Sivakumar ... Petitioner vs. 1.The Income Tax Officer, Ward 2, Ramanathapuram, No.176, Sapthagiri Complex, Vandikara Street, Ramanathapuram-623 501. 2.The Principal Commissioner of Income Tax, Madurai, Madurai-625 002. 1/7 https://www.mhc.tn.gov.in/judis W.P.(MD)No.18542 of 2023 3.The Sub Registrar, Office of the Sub Registrar, Veeracholan, Virudhunagar District. ... Respondents PRAYER: Writ Petition filed under Article 226 of the Constitution of India for issuance of Writ of Mandamus, to direct the 3rd respondent to lift the attachment order, dated 18.09.2019, passed by the first respondent / Income Tax Officer under Section 281 B of the Income Tax Act, 1961, pursuant to approval of the second respondent, dated 06.09.2019, within a stipulated time that may be fixed by this Court. For Petitioner : Mr.Henri Tiphagne For R1 and 2 : Mr.N.Dilip Kumar For R3 : Mr.R.Suresh Kumar Additional Government Pleader ***** 2/7 https://www.mhc.tn.gov.in/judis W.P.(MD)No.18542 of 2023 O R D E R This writ petition is filed for writ of Mandamus, to direct the 3rd respondent to lift the attachment order, dated 18.09.2019, passed by the first respondent / Income Tax Officer under Section 281 B of the Income Tax Act, 1961, pursuant to approval of the second respondent, dated 06.09.2019, within a stipulated time that may be fixed by this Court. 2. The petitioner is an assessee under the Income Tax Department. The respondents have assessed the income tax of the petitioner for the assessment year 2015-2016, 2016-2017, under various provisions of the 3/7 https://www.mhc.tn.gov.in/judis W.P.(MD)No.18542 of 2023 Act. The petitioner could not pay the tax. Hence, the respondents have attached the property. The contention of the petitioner is that if the respondents allow to sell the property, he would pay the tax from the sale proceeds and has stated in the affidavit that he would submit an undertaking to this effect. 3. On instructions, the learned Senior Standing Counsel appearing for respondents 1 and 2 submitted that if the assessee is submitting an affidavit or indemnity bond or any kind of assurance to the Court that he would pay the tax dues immediately after selling the property, then the respondents would obey the same. 4/7 https://www.mhc.tn.gov.in/judis W.P.(MD)No.18542 of 2023 4. Therefore, this Court is directing the petitioner to submit an affidavit / indemnity bond to the respondents within a period of one week from the date of receipt of a copy of this order. The respondents shall lift the attachment within a period of one week thereafter and communicate the same to the 3rd respondent. The 3rd respondent shall reverse the entry of attachment. Then, the petitioner is directed to sell the property and shall adhere to the undertaking affidavit / indemnity bond. 5/7 https://www.mhc.tn.gov.in/judis W.P.(MD)No.18542 of 2023 5.With the above said observation, the writ petition is allowed. No costs. Index : Yes / No 21.08.2023 Internet : Yes NCC : Yes / No Tmg To The Sub Registrar, Office of the Sub Registrar, Veeracholan, Virudhunagar District. 6/7 https://www.mhc.tn.gov.in/judis W.P.(MD)No.18542 of 2023 S.SRIMATHY, J Tmg W.P.(MD)No.18542 of 2023 21.08.2023 7/7 https://www.mhc.tn.gov.in/judis "