Usaff Cheenammadath V. Assessment Unit, National Faceless Assessment Centre, New Delhi, Income Tax Department and Income Tax Officer, Ward-1& TPS, Aayakar Bhavan, Vidhyanagar, Kasaragod and Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Income Tax Department, New Delhi and Principal Commissioner of Income Tax, Aayakar Bhavan, North Block, Mananchira, Kozhikode and Union Bank of India, Mahamaya Building, Terole, Nileshwar, Kasaragod

WP(C)/27205/2024

AI Insights

The case involves the petitioner, Usaff Cheenammadath, who challenged the recovery proceedings initiated against his bank account following an assessment order under the Income Tax Act, 1961. The petitioner had filed an appeal and a stay petition against the assessment order, which was still under consideration. The recovery proceedings were initiated based on the assessment order, leading the petitioner to seek judicial intervention to suspend these proceedings until the stay petition was resolved. The court's decision focused on ensuring that the petitioner's rights were protected while the appellate authority considered the stay petition.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 814571 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 31-07-2024
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: P G JAYASHANKAR; A S P KURUP
• Assessee Lawyers: S ARUN RAJ
• Keywords: Bank Account Attachment; Income tax assessment; Recovery proceedings; Stay Petition
• Section: 147; 144; 144B; 226(3)

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE GOPINATH P. WEDNESDAY, THE 31ST DAY OF JULY 2024 / 9TH SRAVANA, 1946 WP(C) NO. 27205 OF 2024 PETITIONER/S: USAFF CHEENAMMADATH, AGED 61 YEARS S/O. ABOOBACKER, FAIZAL MANZIL, VAININGAL, BANGALAM P.O.,KASARAGOD, PIN - 671314 BY ADV S.ARUN RAJ RESPONDENT/S: 1 ASSESSMENT UNIT, NATIONAL FACELESS ASSESSMENT CENTRE, NEW DELHI, INCOME TAX DEPARTMENT, 2ND FLOOR, E- RAMP, JAWAHARLAL NEHRU STADIUM, NEW DELHI, PIN - 110003 2 INCOME TAX OFFICER, WARD-1& TPS, AAYAKAR BHAVAN, VIDHYANAGAR, KASARAGOD, PIN - 671123 3 COMMISSIONER OF INCOME TAX (APPEALS), NATIONAL FACELESS APPEAL CENTRE, INCOME TAX DEPARTMENT, 2ND FLOOR, E- RAMP, JAWAHARLAL NEHRU STADIUM, NEW DELHI, PIN - 110003 4 THE PRINCIPAL COMMISSIONER OF INCOME TAX AAYAKAR BHAVAN, NORTH BLOCK, MANANCHIRA, KOZHIKODE, PIN - 673001 5 UNION BANK OF INDIA, MAHAMAYA BUIDING, TEROLE, NILESHAWAR, KASARAGOD, REPRESENTED BY ITS BRANCH MANAGER, PIN - 671314 BY ADV KEERTHIVAS GIRI OTHER PRESENT: SRI. P G JAYASHANKAR (SC -IT DEPT) SRI. ASP KURUP (SC- UBI) THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 31.07.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P (C) No.27205/2024 -2- J U D G M E N T The petitioner suffered Ext.P1 order of assessment under the provisions of the Income Tax Act, 1961 ('the 1961 Act'). The petitioner has preferred Ext.P2 appeal along with Ext.P3 stay petition before the 3rd respondent. Pending consideration of the stay petition, proceedings have been initiated against the bank account maintained by the petitioner with the 5th respondent bank under Section 226 (3) of the 1961 Act. The petitioner prays that the recovery proceedings may be suspended pending consideration of the stay petition by the Appellate Authority. It is also pointed out that the credit balance in the account maintained with the 5th respondent is only Rs.33,000/-. 2. Heard the learned Standing Counsel for the respondent Department the learned Standing Counsel for the 5th respondent bank. 3. Having heard the learned respective counsel as above, this writ petition will stand disposed of directing the 3rd respondent to consider and pass orders on Ext.P3 application for stay filed in Ext.P2 appeal after affording an opportunity of hearing to the petitioner within a period of one month from the date of receipt of a certified copy of this judgment. Further recovery proceedings will remain suspended pending consideration of the matter by the 3rd respondent as directed above. It will also be open to the W.P (C) No.27205/2024 -3- petitioner to request the 3rd respondent to direct the lifting of attachment under Section 226 (3) of the 1961 Act while the stay petition is being considered. The writ petition is disposed of as above. Sd/- GOPINATH P. JUDGE AMG W.P (C) No.27205/2024 -4- APPENDIX OF WP(C) 27205/2024 PETITIONER EXHIBITS Exhibit P1 A TRUE COPY OF THE ASSESSMENT ORDER DATED 9-1-2023 UNDER SECTIONS 147 R.W.S 144 AND144B OF THE ACT PASSED BY THE 1ST RESPONDENT FOR THE AY 2018-19 Exhibit P2 A TRUE COPY OF THE FIRST APPEAL DATED 10-8-2023 E- FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT ON 16-8-2023 FOR THE AY 2018-19 Exhibit P3 A TRUE COPY OF THE STAY PETITION DATED 10-8-2023 FOR THE AY 2018-19 E-FILED BEFORE THE 3RD RESPONDENT:- CIT (APPEALS), NATIONAL FACELESS APPEAL CENTRE, DELHI ON 16-8-2023 SEEKING STAY OF RECOVERY BASED ON EXHIBIT P-1 ASSESSMENT ORDER Exhibit P4 A TRUE COPY OF THE NOTICE U/S 226 (3) OF THE ACT ISSUED TO THE 5TH RESPONDENT BANK BY THE 2ND RESPONDENT "