UCO Bank V. Union of India

WP/22691/2021

AI Insights

The case involved UCO Bank, which sought to challenge the attachment of a property under the proceedings of the Income Tax Department. The property in question was attached as part of tax recovery proceedings. UCO Bank filed a writ petition under Article 226 of the Constitution of India, arguing that the attachment was illegal and arbitrary, contravening the provisions of the Secularization and Reconstruction of Financial Assets and Interests Act, 2002. The Income Tax Department, represented by its Tax Recovery Officer and Deputy Commissioner, was the respondent. During the proceedings, the Income Tax Department withdrew the attachment, leading to the disposal of the petition.

• Counselvise Citation: [2021] 140 COUNSELVISE.COM (IT) 676490 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 06-12-2021
• Assessment Year: misc
• Laws Referred To: Article 226 of the Constitution of India, Banking Regulation Act, 1949, Secularization and Reconstruction of Financial Assets and Interests Act, 2002, Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: SRINAMAVARAPURAJESHWARARAO; B NARASIMHA SARMA
• Assessee Lawyers: G KALYAN CHAKRAVARTHY
• Keywords: Attachment of property; Financial Assets; Income Tax; Legal Proceedings; Writ of Mandamus
• Section: 226

Judgement Text

"HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) MONDAY, THE SIXTH DAY OF DECEMBER TWO THOUSAND AND TWENTY ONE PRESENT THE HONOURABLE SRI JUSTICE UJJAL BHUYAN AND THE HONOURABLE SMT JUSTICE P. MADHAVI DEVI Between: M/s. UCO Bank, A Banking Company incorporated under the Provisions of Companies Act, and a banking company Under the provisions of Banking Regulation Act, 1949, Stressed Assets Managembnts Branch, Represented Oy iis C\"nief Ir,4anager, Sri Amarsingh Rathod, Having its branch office at Navbharat Chambers, Som-ajiguda, Hyderabad. AND ...PETTTTONER 1. Union of lndia, Represented by its Secretary, Ministry of Finance, New Delhi. 2. lncome Tax Department, Represented by its Tax Recovery Officer - 'l , Circle No 1 (1), lncome Tax Towers, Masab Tank, Hyderabad. 3. Deputy Commissioner of lncome Tax, lncome Tax Department, Circle No. 1 (1), lncome Tax Towers, Masab Tank,Hyderabad. 4. Joint Sub - Registrar, Ranga Reddy District. ...RESPONDENTS Petition under Article 226 of the Constitution of lndia praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue writ or order or direction, more so in the nature of Writ of Mandamus, declaring the proceedings of the second respondent herein vide F No.TRO/TRC No. 88/ITCP- 1612017-18 dated 1911212017 under Certificate Proceeding Rules, 1962 and under Rule 48 of Second Schedule to lncome Tax Act, 1961, attaching the property bearing Plot bearing No. 181, admeasuring 620 sq. yds., in Sy. No. 120 of Vattinagulapalli Village and Gram Panchayat, Rajendra Nagar Mandal, Ranga Reddy District as illegal, arbitrary, contrary to the provisions of the. Secularization and Reconstruction of Financial Assets and lnterests Acl, 2002 and consequently direct the fourth respondent herein to receive and register the Sale Certificate from the Petitioner Bank by raising the attachment order. lA NO: 1 OF 2O2'l Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to direct the respondents 2 and 3 herein not to pass any order for sale or create any third-party WRIT PETITION NO: 22691 OF 2021 rights, pursuant to atta )hment orders passed in F No.TRO/TRC No.BB/ITCP-16/20',l 7- 18 dated 1gl12t2}1i in relation to property bearing Plot bearing No. 181 , admeasuring 620 sq. yds., in sy. No. 120 of vattinagulapalli Village and Gram Panchayat,RajendraNagarMandal,RangaReddyDistrict,bythesecond respondent. Counsel for the Petitir ner: SRl. G. KALYAN CHAKRAVARTHY CounselfortheResprndentNo.l:SRINAMAVARAPURAJESHWARARAO' . ASSISTANT SOLICITOR GENERAL Counsel forthe Respr ndent Nos.2 & 3: SRI B. NARASIMHA SARMA SENIOR S.C. FOR INCOME TAX DEPARTMENT Counsel for the Respr ndent No.4: GP FOR STAMPS & REGISTRATIONS The Court made the f< llowing: ORDER l' HONOUITAI}LE SRI JUSTICE UJJAL BHUYAN AND HONOUITABLE SMT..IUSTICE P. MADHAVI DBVI W.P.No.2269l OF 2027 QBDE& fp\", g on'ble ,9ri Justice UJ'jol Bhuyon) Heard leamed counsel lor the parties. 2. Mr.B.Narasirnha Sarma, learned Senior Standing Counsel lor the Incorre 1'ax l)epartnent i.e., respondents Nos.2 and 3 has produced belorc us a letter dated 24.11.202 I issued by the Tax Recovery Olllcer- | irr rhc ofllce ol' the principal Commissioner of Income Tax- l, I-lyder.abad, rvhereby attachment of immoveable property of the peritioner has been withdrawn. Copy ol this letter be kept as part of the record and marked as Ex.X. 3. Since attachment of immoveable property has been withdrawn, necessary steps shall now be taken for registration of the sale certificate dated 08.09.2021 before the competent authority. 4, Writ petition is disposed oL Miscellaneous applications, il.any pcnding, shall stand closed. 6. No costs SD/.N.CHANDRA SEKH AR RAO ,TRUE COPY// ASSISTANT RE ISTRAR SECTION rc 1 . The Secretarv 2. The Tax Rec6very O It/inlstry fficer-'l , of Ftnance, Union of lncome Tax Department, lndia, New Circle No, 1 (1), lncom Delhi. tax I owers, Masab Ta nk, Hyderabad, 3. The Deputy Commissioner of lncome Tax ^ll.1r]1\" Tax Department, Circte No eraDad. (1), The ln Jo come Tax To int Sub - Registrar wers, Masab Tank Ranga Red ,Hyd dy District. One CC to Sri G. Kalyan Cha kra va rthy, Advocate [OPUC One CCto Sri Na 5 To, 7. 8. CHR MMA ER 1 4. 5. 6. loPUCl IWO CD One Spa Copies re Copy mavarapu Rajes hwara Rao, Assistant Solicitor General HIGH COURT DATED:0611212021 ORDER W.P.No.22691 'rf 2021 DISPOSING OI THE WRIT PETITION WITHOUT COS TS 1H.iIIAi.g o t - :) -) q a f,?n.?::i q7 bL) {r 1 '/ ,. "