Mr.v.krishnamurthy v. The Income Tax Officer, Non-Corporate Ward-19(6), Income Tax Department

IN THE HIGH COURT OF JUDICATURE AT MADRASDATED : 03.02.2022CORAMTHE HON'BLE MR.JUSTICE C.SARAVANAN W.P.NOS.628 & 631 OF 2022ANDW.M.P.NOS.673, 674, 680 & 681 OF 2022(Through Video Conferencing) Mr.V.Krishnamurthy ... Petitioner in both W.Ps Vs. 1. The Income Tax Officer, Non-Corporate Ward-19(6), Income Tax Department, 121, Nungambakkam High Road, Chennai - 600 034. 2. The Assistant Commissioner of Income Tax, National Faceless Assessment Centre, Delhi, Room No.401, 2nd Floor, E-Ramp, Jawarharlal Nehru Stadium, Delhi - 110 003. 3. The Principal Commissioner of Income Tax, Chennai - 3, Income Tax Department, 121, Nungambakkam High Road, Chennai - 600 034.... First to Third Respondents in both W.Ps 4. M/s.Axis Bank, 82, Radhakrishnan Salai, Mylapore, Chennai - 600 004.... Fourth Respondent in W.P.No.628 of 2022 5. M/s.Punjab National Bank, No.205, Velachery Road, East Tambaram, Chennai - 600 073.... Fourth Respondent in W.P.No.631 of 2022 Prayer in W.P.No.628 of 2022: Writ Petition filed under Article226 of Constitution of India, for issuance of a Writ ofCertiorarified Mandamus, calling for the records of the WritPetitioner/Assessee on the file of the first respondent to quashthe impugned attachment order dated 08.12.2021 passed underSection 226(3) of the Income Tax Act, 1961 for the AssessmentYears 2017-2018 and 2018-2019 in DIN and NoticeNo.ITBA/RCV/S/226(3)-1/2021-2022/1037604667(1) and consequentlydirecting the first respondent to stop the recovery proceedingsduring the pendency of the first appeal for both the assessmentyears. Prayer in W.P.No.631 of 2022: Writ Petition filed under Article226 of Constitution of India, for issuance of a Writ ofCertiorarified Mandamus, calling for the records of the WritPetitioner/Assessee on the file of the first respondent to quashthe impugned attachment order dated 08.12.2021 passed underSection 226(3) of the Income Tax Act, 1961 for the AssessmentYears 2017-2018 and 2018-2019 in DIN and NoticeNo.ITBA/RCV/S/226(3)-1/2021-2022/1037591027(1) and consequentlydirecting the first respondent to stop the recovery proceedingsduring the pendency of the first appeal for both the assessmentyears. Mrs.Hema Muralikrishnan, learned Senior Standing Counseltakes notice on behalf of the first to third respondents. 2. The petitioner has challenged the impugned BankAttachment Notices attaching the petitioner's account with AxisBank and Punjab National Bank.3. The petitioner had suffered Assessment Orders dated05.12.2019 and 24.02.2021 for the Assessment Years 2017-2018 and2018-2019 respectively. 4. The petitioner has also filed an appeal before the CIT(Appeals) under Section 246A of the Income Tax Act, 1961 againstthe respective Assessment Orders on 31.12.2019 and 18.03.2021. https://hcservices.ecourts.gov.in/hcservices/ 5. Simultaneously, the petitioner has also movedapplications/petitions on 02.01.2020 and on 19.03.2021 underSection 220(6) of the Income Tax Act, 1961 to stay the recoveryof the amounts confirmed in the Assessment Orders dated05.12.2019 and 24.02.2021. 6. The learned counsel for the petitioner submits that thepetitioner was unwell and could not participate and respond tothe notices issued under the Income Tax Act, 1961 and that highpitch demand was confirmed whereas the petitioner's turnoveritself was far below the amount which has been confirmed in theAssessment Orders 05.12.2019 and 24.02.2021. 7. The learned counsel for the petitioner further submitsthat the respondents have not been disposed of theapplications/petitions filed under Section 220(6) of the IncomeTax Act, 1961 and therefore submits that the impugned BankAttachment Notices have to be quashed. 6. The learned counsel for the petitioner submits that thepetitioner was unwell and could not participate and respond tothe notices issued under the Income Tax Act, 1961 and that highpitch demand was confirmed whereas the petitioner's turnoveritself was far below the amount which has been confirmed in theAssessment Orders 05.12.2019 and 24.02.2021. 7. The learned counsel for the petitioner further submitsthat the respondents have not been disposed of theapplications/petitions filed under Section 220(6) of the IncomeTax Act, 1961 and therefore submits that the impugned BankAttachment Notices have to be quashed. 8. Opposing the prayer, the learned Senior Standing Counselfor the first to third respondents, on instructions, submitsthat as far as the Assessment Year 2017-2018 is concerned, twocommunications/letters were sent on 03.09.2021 and 17.09.2021which have not been challenged by the petitioner. 9. The learned Senior Standing Counsel further submits thatthe petitioner has not filed any documents relating to theAssessment Year 2018-2019 as to whether any othercommunications were received by the petitioner pursuant to theapplications/petitions filed under 220(6) of the Income Tax Act,1961. 10. The learned Senior Standing Counsel further submits thatthese writ petitions are liable to be dismissed as thepetitioner has not challenged the communications/letters dated03.09.2021 and 17.09.2021. 11. Heard the learned counsel for the petitioner and thelearned Senior Standing Counsel for the first to thirdrespondents. I have also perused the records. 12. The petitioner has given reasons for not participatingin the proceedings earlier on account of the fact that thepetitioner was unwell. The Assessment Orders which have beenpassed on 05.12.2019 and 24.02.2021 appears to be an ex-parteorders. 13. The merits of the contention of the petitioner will haveto be decided in the appeals pending before the CIT (Appeals) https://hcservices.ecourts.gov.in/hcservices/ which were reportedly filed on 31.12.2019 and 18.03.2021 for therespective Assessment Years. 14. The petitioner's applications/petitions under Section220(6) of the Income Tax Act, 1961 have not been disposed in themanner known to law. There are guidelines issued by the CentralBoard of Direct Taxes starting from 1989 which mandates aspeaking order to be passed under Section 220(6) of the IncomeTax Act, 1961. The communications/letters dated 03.09.2021 and17.09.2021 have enclosed in the typed set of papers in supportof the present writ petitions indicate that there is noapplication of mind by the Officer concerned. 15. Under these circumstances, the impugned Bank AttachmentNotices are set aside and the cases are remitted back to thefirst respondent to pass appropriate orders on merits and inaccordance with law on the applications/petitions filed underSection 220(6) of the Income Tax Act, 1961 within aperiod of four weeks from the date of receipt of a copy of thisorder. 16. Needless, to state that the petitioner shall be given anopportunity of being heard as per the relevant Acts and Rules.The first respondent is also directed to verify whether theorders passed for the Assessment Year 2018-2019 was ex-parteorder or not and thereafter pass appropriate orders within theaforesaid period. 17. These Writ Petitions stand disposed of with the aboveobservations. No costs. Consequently, connected WritMiscellaneous Petitions are closed. Sd/- Assistant Registrar(CS-VI) //True Copy// Sub Assistant Registrar rgm/arb To 1. The Income Tax Officer, Non-Corporate Ward-19(6), Income Tax Department, 121, Nungambakkam High Road, Chennai - 600 034. 16. Needless, to state that the petitioner shall be given anopportunity of being heard as per the relevant Acts and Rules.The first respondent is also directed to verify whether theorders passed for the Assessment Year 2018-2019 was ex-parteorder or not and thereafter pass appropriate orders within theaforesaid period. 17. These Writ Petitions stand disposed of with the aboveobservations. No costs. Consequently, connected WritMiscellaneous Petitions are closed. Sd/- Assistant Registrar(CS-VI) //True Copy// Sub Assistant Registrar rgm/arb To 1. The Income Tax Officer, Non-Corporate Ward-19(6), Income Tax Department, 121, Nungambakkam High Road, Chennai - 600 034. 2. The Assistant Commissioner of Income Tax, National Faceless Assessment Centre, Delhi, Room No.401, 2nd Floor, E-Ramp, Jawarharlal Nehru Stadium, Delhi - 110 003.3. The Principal Commissioner of Income Tax, Chennai - 3, Income Tax Department, 121, Nungambakkam High Road, Chennai - 600 034. +1cc to M/s.Hema Muralikrishnan, Advocate, S.R.No.7450 W.P.Nos.628 & 631 of 2022 and W.M.P.Nos.673, 674, 680 & 681 of 2022 GP(CO)RLP(22/02/2022)