Voith Turbo Pvt. Ltd. V. Assistant Commissioner of Income Tax

WP/37625/2021

AI Insights

The case involves Voith Turbo Pvt. Ltd., the petitioner, who challenged the garnishee notices issued by the Assistant Commissioner of Income Tax, Circle B (1), Hyderabad, which attached the bank accounts of the petitioner for the recovery of an income tax demand of Rs. 5,33,43,030 for the assessment year 2018-19. The petitioner had already filed an appeal against the assessment order and paid 20% of the disputed demand. The court heard arguments from both sides and decided to quash the garnishee notices based on the partial payment and the stay granted by the Assistant Commissioner of Income Tax.

• Counselvise Citation: [2021] 140 COUNSELVISE.COM (IT) 692002 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 31-12-2021
• Assessment Year: misc
• Laws Referred To: Article 226 of the Constitution of India, Section 226(3) of the Act, Section 151 CPC, Section 143(3) Read with Section 92(1A) Read with Section 1448 of the Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: A RADHA KRISHNA; B MUKHERJEE
• Assessee Lawyers: TEJ PRAKASH TOSHNIWAL
• Keywords: Assessment year 2018-19; Faceless assessment; Garnishee notices; Income tax demand; Writ of Mandamus
• Section: 143(3); 151; 1448; 226(3); 92(1A)

Judgement Text

"HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) FRIDAY, THE THIRTY FIRST DAY OF DECEMBER TWO THOUSAND AND TWENTY ONE PRESENT THE HONOURABLE SRI JUSTICE UJJAL BHUYAN THE HONOURABLE SMT JUSTICE P.MADHAVI DEVI WRIT PETITION NO: 37625 OF 2021 Between: AND 1 Voith Turbo Pvt. Ltd., Road No 7, lndustrial Estate, Nacharam. Hyderabad, represented by its Finance Manager Mr. KV Saravana Kumar S/o Manikhya Rao, Aged about 51 Years, R/o Hyderabad. ...PETITIONER Assistant Commissioner of lncome Tax, Circle B (1), Signature Tower, Kondapur, Hyderabad. Principal Commissioner of lncome Tax-ll, Signature Tower, Kondapur, Hyderabad. Commissioner of lncome Tax Appeals (5), Signature Tower, Kondapur, Hyderabad. r Principal Chief Commis-sioner of lncome Tax, Andhra Pradesh and Telangana lncome Tax Towers, AC Guards, Hyderabad. Branch Manager, HSBC Bank Ltd., Rajbhawan Road branch, Hyderabad. Branch Manager, State Bank of lndia, Post Bag No.1, Surana lndustries Compound, ECIL Road, Hyderabad. Branch Manager, HDFC Bank Limited Narmada Arcade, Plot No 131, Nacharam, Hyderabad Branch Manager, lClCl Bank Limited 6-2-1012, TGV Mansion, Khairtabad, Hyderabad Branch Manager, Deutsche Bank, DN Road, Mumbai 10.Ihe Union of lndia, rep. by its Secretary, N/inistry of Finance, Department of Revenue, Direct Taxes, Government of lndia, North Block New Delhi-1 10001. ..,RESPONDENTS Petition under Article 226 of rhe constitution of lndia praying that in the circumstances stated in the affidavit filed therewith, the High court may be pleased to issue a writ of lVlandamus or any other appropriate wril, order or direction to declare the action of the 'l st respondent, in issuing garnishee notices dt.30-1 1-2021 and dl.o7-12-2021 under the Act in attaching the bank account of the petitioner company with the Respondent No Sth to gth for the assessment year 2018-19 is quite contrary to law and consequenfly set aside the garnishee notices issued under section 226(3) of the Act for the assessment year 2o1g:1g pending disposar of the above appeal filed before the 3rd respondent. 2 J 4 6 7 I I ANO: 1OF2 21 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 suspend the garnishee notices dt. 3o-11-2021 , dl.ol -12-2021 issued by ',l st respondent to the Sth to 9th respondents in attaching the bank account of the Petitioner company toward the income tax disputed demand of Rs.5,33,43,030/- for the assessment year 2018-19 under the Act, pursuant to the intimation order dated 21 .12.2019 passed by central Processing centre, lncome Tax Department and assessment order dt. 25.09.2021 passed by the assessing officer of National Faceless Assessment centre pending disposal of the above writ petition. lA NO: 2 OF 202'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 grant stay of collection of disputed income tax demand of Rs. 5,33,43,030/-(lncluding Interest), out of which the petitioner has already deposited Rs. 1,06,68,6061 for the assessment year 2018-19 under the Act, pursuant to the intimation order dated 21 .12.2019 passed by central Processing centre, lncome Tax Department and scrutiny assessment order dt. 25.09.2021 passed by the Learned assessing officer of National Faceless Assessment centre passed 0nder section 143(3) Read with Section 92(1A) and Read with section 1448 of the Act, pending disposal of the above writ petition. Counsel for the Petitioner: SRI TEJPRAKASH TOSHNIWAL Counsel for the Respondent Nos. 1 to 4: SRI A. RADHA KRISHNA, SC FOR INCOME TAX Counsel forthe Respondent No. 10: SRI B. MUKHERJEE FOR SRINAMAVARAPARAJEsHwARRAo,ASSISTANTSoLIcIToRGENERAL Counsel for the Respondent Nos. 5 to 9: -- The Court made the following: ORDER HONOURABLE SRI JUSTICE UJJAL BHUYAN AND HONOURABLE SMT. JUSTICE P. MADHAVI DEVI W.P.No.37625 OB 2021 Heard Mr.Tejprakash Toshniwal, leamed counsel for the petitioner and Mr.A.Radha Krishna, leamed Standing Counsel for respondent Nos.1 to 4/Revenue. Also heard Mr.B.Mukherjee, leamed counsel appearing on behalf of learned Assistant Solicitor General of India for respondent No. l0funion of India. 2. Against the assessment order dated 21'.12.2019 for the assessment year 2018-2019, petitioner har preferred an appeal before respondent No.3 on 23.01 .2020. In the meanwhile, demand notice was issued to the petitioner whereafter gamishee notices were issued by respondent No.1 to the Banks of the petitioner. Aggrieved, present writ petition has been filed for quashing of the gamishee notices. 3. Today, Mr.Toshniwal, leamed counsel for the petitioner submits that petitioner has paid 20Yo of the outstanding demand before the assessment authority, whereafter the Assistant Commissioner ol lncome. Circle 8( l), I1-u-derabad issued letter dated 28. I 2.2021 infbrming the petitioner that in view of payment of 20% of the outstanding denrand, request lor stay ol collection of taxes is granted till the disposal of the appeal pending before respondent No.3. 2 4. In view of above, we direct respondent Nos'l to 4 to withdraw the gamishee notices dated 30.11.2021and 07'72'2021 impugned in the wdt petition. 5 Writ petition is, accordingly, disposed of. //TRUE COPY// SD/.K.AMMAJI ASSISTANT REGISTRAR /'' ( [tL SECTION OFFICER 6 Miscellaneous applications, if any pending, shall stand closed' 7 . No costs. To, 15. One spare coPY NPJ BS 1. The Assistant Commissioner of lncome Tax, Circle 8 (1), Signature Tower, Kondapur, Hyderabad. 2. The Piincipal Commissioner of lncome Tax-ll, Signature Tower, Kondapur, Hyderabad. 3. The Commissioner of lncome Tax Appeals (5)r Signature Tower' Kondapur, Hvderabad. 4. T6e Princioal Chief Commissioner of lncome Tax, Andhra Pradesh and Telangand lncome Tax Towers, AC Guards, Hyderabad. 5. The B-ranch Managei, HSBC Bank Ltd., Rajbhawan Road btanch, Hyderabad. 6. The Branch Mana[er, State Bank of lndia, Post Bag No.1, Surana lndustries Comoound. ECIL Road, Hvderabad. 7. The branch Manager, HDFC Bank Limited Narmada Arcade, Plot No 131, Nacharam, Hyderabad B. The Branch Manager, lClCl Bank Limited 6-2-1012, TGV Mansion, Khairtabad, Hvderabad 9. The Branch Manager, Deutsche Bank, DN Road, Mumbai i0.The Secretary, Miiistry of Finance, Department of Revenue, Direct Taxes,Union of lndia, Gov6inment of lndia, North Block New Delhi-110001. 11. One CC to SRI TEJPRAKASH TOSHNIWAL Advocate tOPUqL - - iz.One CC to SRI A. RADHA KRISHNA,SC FoR INCoME-rALtA?V.c-1.-^- i3:o; ca io rlAwAvnnaPA RAJESHWAR RAo, ASSISTANT sollclroR GENERAL [OPUC] '14. Two CD Copies. Z- HIGH COURT DATED:31 11212021 ORDER WP.No.37625 of 2021 DISPOSING OF THE WRIT PETITION WITHOUT COSTS. {E S rAr 1 :1 - 2 4 .rari 2q22 : -:' oY\", \"'D (ro ) "