T Manikandan V. The Deputy Commissioner of Income Tax (Investigation)

WP(MD)/22539/2024

AI Insights

The case involves a Writ Petition filed by T. Manikandan, R.M.S. Kamali, M. Pavis, and M. Santhi against the Deputy Commissioner of Income Tax (Investigation) and two branches of Canara Bank. The petitioners sought a Writ of Mandamus to direct the banks to de-freeze their accounts, which were frozen under a prohibitory order issued by the Income Tax Department. The order was initially valid for 60 days but had expired, yet the accounts remained frozen. The court was informed that the banks had not yet complied with the de-freezing despite the expiration of the order. The banks' counsel then assured the court that the accounts would be de-frozen within 48 hours.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 761566 (HC-MISC)
• Appeal Type: Others
• Pronouncement Date: 23-09-2024
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: N DILIP KUMAR; SATHEESH KUMAR
• Assessee Lawyers: V KASIRAJA
• Keywords: Bank accounts; De-freeze; Income Tax; Prohibitory order; Writ of Mandamus
• Section: 132(3); 132(8A)

Judgement Text

"W.P.(MD).No.22539 of 2024 BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT DATED : 23.09.2024 CORAM THE HONOURABLE MR. JUSTICE MOHAMMED SHAFFIQ W.P.(MD).No.22539 of 2024 1.T.Manikandan 2.R.M.S.Kamali 3.M.Pavis 4.M.Santhi ... Petitioners Vs. 1.The Deputy Commissioner of Income Tax (Investigation), Unit II, 108, Uthamar Gandhi Road, Subba Road Avenue, Nungambakkam, Chennai - 600 034. 2.The Branch Manager, Canara Bank, Thanthoni Branch, Plot No.4, Dindigul Main Road, Collectorate Post, Thanthoni, Karur - 639 007. 3.The Branch Manager, Canara Bank, Karur Branch, 27, Covai Road, Karur - 639 001. ...Respondents 1/5 https://www.mhc.tn.gov.in/judis W.P.(MD).No.22539 of 2024 Prayer : Writ Petition filed under Article 226 of the Constitution of India, praying this Court to issue a Writ of Mandamus, directing the 2nd and 3rd respondents to defreeze the Saving Bank Accounts of the petitioners in Saving Bank A/c. Nos.110013551182, 4795101007830, 4795101008988 and 1227101040757 respectively maintained with the 2nd and 3rd respondents Bank and permit them to operate the said accounts without any further hindrance or obstruction as the prohibitory order issued by the 1st respondent dated 25.05.2023 u/s. 132(3) of the Income Tax Act, 1961 is expired u/s. 132(8A) of the Income Tax Act, 1961. For Petitioners : Mr.V.Kasiraja For R-1 : Mr.N.Dilipkumar Senior Standing Counsel For R-2 & R-3 : Mr.Satheesh Kumar ORDER The present Writ Petition is filed for Mandamus directing the second and third respondents to de-freeze the bank accounts of the petitioners in Saving Bank A/c Nos.110013551182, 4795101007830, 4795101008988 and 1227101040757 respectively maintained with the second and third respondents Bank and permit them to operate the said accounts without any further hindrance or obstruction as the prohibitory order issued by the first respondent dated 25.05.2023 under Section 132(3) of the Income Tax Act, 1961, has expired under Section 132(8A) of the Income Tax Act, 1961. 2/5 https://www.mhc.tn.gov.in/judis W.P.(MD).No.22539 of 2024 2. It is submitted by the learned Senior Standing Counsel for the first respondent that they have already issued directions to de-freeze the accounts of the petitioners, inasmuch as validity of the prohibitory order under Section 132(3) of the Act is only for a period of 60 days and the attachment has already exceeded the stipulated period in terms of Section 132 of the Act. As a matter of fact, the first respondent/authority, as early as on 26.10.2023, replied in response to a letter by the second respondent that the validity of the prohibitory order dated 25.05.2023 has already expired. However, despite the same, the respondent Bank has not de-freezed the accounts of the petitioners. 3. The learned counsel for the second and third respondents now undertakes to de-freeze the accounts of the petitioners within a period of 48 hours. 4. Recording the same, this Writ Petition stands closed. There shall be no order as to costs. 23.09.2024 Index : Yes / No Internet : Yes/ No Lm 3/5 https://www.mhc.tn.gov.in/judis W.P.(MD).No.22539 of 2024 To The Deputy Commissioner of Income Tax (Investigation), Unit II, 108, Uthamar Gandhi Road, Subba Road Avenue, Nungambakkam, Chennai - 600 034. 4/5 https://www.mhc.tn.gov.in/judis W.P.(MD).No.22539 of 2024 MOHAMMED SHAFFIQ , J. Lm W.P.(MD).No.22539 of 2024 23.09.2024 5/5 https://www.mhc.tn.gov.in/judis "