Thrissur Expressway Limited V. The Income Tax Officer and 4 others

WP/4916/2023

AI Insights

The case involves Thris_sur Expressway Limited, represented by its director M Prudhvi Kumar Reddy, challenging a garnishee notice issued by the Income Tax Officer, Ward 2(1), Hyderabad, which was addressed to Axis Bank Limited for the attachment of the petitioner's bank account. The notice was issued under Section 226(3) of the Income Tax Act, 1961, and was later amended due to a typographical error. The petitioner argued that the issuance of the garnishee notice during the pendency of a rectification request was arbitrary and violated the principles of natural justice. The court, after hearing the arguments, directed the petitioner to approach the assessing officer for a stay of demand under Section 220(6) of the Act.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 753041 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 21-02-2023
• Assessment Year: misc
• Laws Referred To: Article 226 of the Constitution of India, Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: K CHOUDARY; GADI KUMAR
• Assessee Lawyers: RAJA RAO SALVAJI
• Keywords: Arbitrary; Garnishee notice; Illegal; Mandamus; Natural Justice; Stay of demand
• Section: 143(3); 151; 220(6); 226(3)

Judgement Text

"[ 3311] THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) TUESDAY,THE TWENTY FIRST DAY OF FEBRUARY TWO THOUSAND AND TWENTY THREE PRESENT THE HONOURABLE THE CHIEF JUSTICE UJJAL BHUYAN AND THE HONOURABLE SRI JUSTICE N.TUKARAMJI WRIT PETITION NO: 4916 OF 2023 Between: AND 1 Thris_sur Expressway Limited, Rep. by its Director M prudhvi Kumar Reddv :1\"Sei, Mohan Reddy aged abolr 46 years R;sisiil;-o'fi''r_bti+dlsb\"Ei,i oJ, 5nrpa Home Layoul, Gachibowli, Hyderabad_32 ...PETITIONER Ihe Income T-ax Officer, Centratized processing Centre, lncome Tax Department, Bangalore. Thg Income Tax Officer, Ward 2(1), Sth Floor, Siqnature Towers. Sv.No.6(p) of Kondapur, Opp. Botanical Gaid6ns, Serlingamipallr(frll, nn Oi.triCi, - -'' ' Hyderabad Jhe Principal Commissioner of lncome Tax, Range 2, 6th Flobr, Signature Io^*gt..,Sy.No.6(P) of Kondapur, Opp. Botanical-GarAens, Serfing;rp\"iff ff,f l, RR District, Hyderabad Urion of lndla, Departme.nt of Revenue, Represented by its Secretary (Revenue), North Block, New Delhi. 5. Axis Bank Limited, Rep.by the Branch Manager, Hyderabad ...RESPONDENTS Petition under Articre 226 of the constitution of lndia praying that in the circumstances stated in the affidavil filed therewith, the High -cJurt may be pleased to issue a writ of mandamus. or any other appropriate writ, order or direction declaring the action of the 2nd Respondent in'issuing garnishee notice ITBA/RCV/S/226(3 -1t2o22-23t1042475s93(1) dated tltlt ZOZZ and amendment letter F.No.lro,w-2(1 yAADCT1703Hl2o22-23 dated 12112t2o22 during the pendency of the rectification request dated 05/1 'l12022 pending before the '1st Respondent as arbitrary, illegal and violative of principles oi naturar justice and consequently 2 2 4 i) ii) 919\"! stay of garnishee notice ITB/ tt(lv/S/22 6(3)_1tZO22_ 2_31104i 475593(1) dated 17r1112022 anri amendment retter F No.lT ),W-2(1YAADCT1ZO3H|2O22-23 daterl 12/12t2022 to the extent ( f A.Y. 2020-21 until the pendency of t e, rectification request dated 0t 11112022 pending before the 1st iespcr rl,,rnt. ii) firrth,rr not take any coercive action until trr pendency of the rectifica ion request dated 05/1 1lZO22 pencitl :efore the 1st Responr ent. lA NO: 1 OF 202 3 Petition undr rr Section .l 51 CpC praying that irt th€, :if curnstances stated in the affidavit firec in support of the peiitio;, in\" uig|, cor rt may oe pteaseo'to grant stav of garn shee notice rrBA/RCV/s/226(3) 1r2o:zt zsito+tiiii6igy dated 17t11t2022 i nd amendment tetter f.No ITO,W 2(1),,1ADrlTt tOtiti&Z_ 23 dated 12112i20i 2 to the extent of A.y. 2o2o-21 passec b,y 2nd Respondent pending disposal of the writ petition. Counsel for the Pet tioner : SRl. RAJA SHEKAR RAO SAL,V 0,..t1 9.\"-rl:.] for the Res pondents 1 TO 3: M/S. K MAMATA CHrl Ltt)ARy, SC FOR INCOME TAX Counsel for the Res rondents 4: SRI GADI PRAVEEN KUM, it, Dy. SOLICtTOR GENERAL The Court made the following: ORDER THE HON'BLE THE CHIEF JUSTICE UJJAL BHTryAN AND THE HON'BLE SRI JUSTICE N. TUKARAMJI WRIT PETITION No.4916 of 2023 ORDER: (Per the Hon'ble the Chief Justice Ltjjat Bhuyan) Heard Mr. Raja Shekar Rao Salvaji, learned counsel for the petitioner and Ms. K.Mamata Choudary, learned Senior Standing Counsel, Income Tax Department for respondent Nos. 1 to 3. We have also heard Mr. G.praveen Kumar, learned Deputy Solicitor General of India for respondent No.4. 2. By filing this petition under Article 226 of the Constitution of India, petitioner has assailed garnishee notice dated 17 .11.2022 issued by the 2\"a respondent under Section 226(3) of the Income Tax Act, 196 1 (briefly referred to hereinafter as'the Act') and addressed to the Sth respondent i.e., Axis Bank Limited, Hyderabad for attachment of bank account of the petitioner. L.I(:J & NTRJ W.L t.4!) I 6 of 2023 3. We may mention that subsequcnt t(r issuance of the afores rid notice datecl 17.11.2022, il\"'r rtsl.:ondent had issued a (:orrigendum dated 12.12.2O2r' stat :q teat there rvas a typ rgraphical error it-t the notice datc [ 1 7 .11.2022. Instead of assessment years 2017-1a,2018 t!, arrd 2019- 2 20 for a sum ol Rs.73,25,51,250.00 cl tt from the petitioner, it should be assessment '('aI s . o I9-20 and 2O2O-21 lc r a sum of Rs.31 .65,81,430.0() 1. Be it stated that for the assessntt:. rt t,errr 2020- rectificatior petition, the impugned not icc - i'.mc to be 21, petitior Ler had filed return of incontc r-t;rrl :t th: Act ot-t 12.O1.2O2'.. Intimation under Section 143( ) o[ the Act .\"r.as issued to t.he petitioner on 20.12.20I I ^1 I( reb,y it ras held that )etitioner was liabie to pa)' it'tc,rtr t la-'< to the tune of F s.3,94,91,230.00. As agzrir st t r<' aforesaid intimation, petitioner has filed arn appli: rtion under Sectiorr 151 of the Act on O5.11.2022' fol r ectification which is s ated to be pe nding. During ptrn, lc ttcv of the issued HCJ & NTRJ W.P.No.4916 of 2023 5. After hearing learned counsel for the parties and on due consideration, Court is of the view that petitioner has got the remedy of approaching the assessing officer under Section 220(61 of the Act for stay of demand. 6. We therefore grant liberty to the petitioner to approach the assessing officer i.e., respondent No.2 under Section 220(61 of the Act whereafter respondent No.2 shall pass an appropriate order in accordance with law after giving due opportunity of hearing to the petitioner. 7 . The above exercise shall be carried out within a period of four (O4) weeks from the date of receipt of a copy of this order. 8. Needless to say the garnishee notice dated 17.11.2022 would be subject to such order that may be passed by the assessing officer under Section 220(6) of the Act. 3 I I t }](U & NTRJ W t'.Lo.4916 of 2023 there sha Ibe no order as to costs 10. N{iscellaneous applications l)encti rrj,l, if any, 1n this Writ l'etit or-r shall stand closed. 4 !). 'l'his disposes of the Writ l)etiti rn. However, To, AS,,r$??.fivcP8B+iiR //TRUE coPY/' aEcroN oFFrcER The lncorne - ax Officer. Centralized processing Centre lncorne Tax Deparlment, lanoalore. The lncome - ar e,ffrcer. Ward ?t1),5th Floor, Siglatur( Towcrs, Sy.No.6(p) of KondagrLrr, )1rp Botanicat Gardens. Serlinlam\"pally(N l, RR District, ' ' Hyderabad The Princrpal. lummissioner of lncome Tax, Ranqe 2, 0.F =loor, Sionature ]qw_ers Sy N r c(F,) of Kondapur. Opp. Botanicat\"Caib,: ,; S\"itirg;r;,;ifiMl, RR Distrrct. H /derabad ,UJ]91-9t]ldll Det)artmenl of Revenue, Represented b.1 t:.; Secretary ( F(evenue l. Nr rlh Etlock, New Delhi. Axis Bank L rn ited. Rep.by the Branch Manaqer, Hvdera rr.l One CC lo SIlt RAJA SHFKAR RAO SALVAJI Arivoca e. .OpUCl One CC to lr// i K rvAlVArA , gC |g|_INCOTME TAX,AT vt.icate tOpUCt one cc to DE oUTy soltctToR GENERAL Or truoiA 1:,i'Utl '- Two CD Copie s 1 2 3 4 6 7 o o EDS GJP t{A HIGH COUR.. DATED:21 l0i',12023 ORDER 1 '-. {s' (r WP.No.4916 <,f 2023 DISPOSING TI{E WRIT PETITION WITHOUT COSTS G . ; I I I I I I i i i I i I l I Nx "