M/S.srivari Agenciesrepresented By Its Managing Partnerm.sivaram v. The Income Tax Officer, Non Corporate Ward 19(4)

IN THE HIGH COURT OF JUDICATURE AT MADRASDATED : 28.02.2022CORAM : THE HONOURABLE MR.JUSTICE R.SURESH KUMARW.P.No.4230 of 2022and W.M.P.Nos.4375 & 4376 of 2022 M/s.Srivari AgenciesRepresented by its Managing PartnerM.Sivaram, S/o.MurugesanNo.17, Brindavanam Street, West MambalamChennai – 600 035. ...Petitioner Vs. 1.The Income Tax Officer, Non Corporate Ward 19(4), No.121, Mahatma Gandhi Road, Nungambakkam, Chennai – 600 034. 2.The Commissioner of Income Tax (Appeals)-12, No.46, Mahatma Gandhi Road, Chennai – 600 034. No.46, Mahatma Gandhi Road, Chennai – 600 034. 3.The Branch Manager, Standard Chartered Bank Sagas Amar Court 59 G.N. Chetty Road, T.Nagar, Chennai – 600 017. ...Respondents Prayer : Petition filed under Article 226 of the Constitution ofIndia praying for issuance of a Writ of Certiorari calling forthe records in DIN & Notice No.:ITBA/RCV/S/226(3)_1/2021-22/1039560778(1) dated 09.02.2022 on the file of the 1[st]respondent issued to the 3[rd]respondent relating to theAssessment Year 2017-18 and quash the same. For Petitioner :Mr.Hari Radhakrishnanfor Mr.J.LeninFor Respondents :Mrs.Hema MuralikrishnanSenior Standing Counsel O R D E R The prayer sought for herein is for a writ of certioraricalling for the records in DIN & Notice No.:ITBA/RCV/S/226(3)_1/2021-22/ 1039560778(1) dated 09.02.2022 on the file of the 1[st]respondent issued to the 3[rd]respondent relating to theAssessment Year 2017-18 and quash the same. 2. For assessment year 2017-18, assessment was over andassessment order was passed under Section 143(2) of the IncomeTax Act, 1961 (in short 'the Act') on 23.12.2019. Aggrieved overthe same, the petitioner/assessee filed appeal before CIT(Appeals) on 22.01.2020, where, according to Mr.HariRadhakrishnan, learned counsel for the petitioner, two hearingsthe matter were heard and the Appellate Authority directed thepetitioner/assessee to file the written submissions, that wasalso submitted. Therefore, the case, according the learnedcounsel for the petitioner, is ripe for disposal. 3. In the meanwhile, the notice under Section 226(3) of theAct dated 09.02.2022 has been issued by the Assessing Authorityto the Banker of the petitioner viz., the Standard CharteredBank, T.Nagar to freeze the bank account of the petitioner.Aggrieved over the same, the present writ petition has beenfiled. 4. Mr.Hari Radhakrishnan, learned counsel appearing for thepetitioner would also canvass the point that, even though,subsequently, the petitioner had filed an application underSection 220(6) of the Act on 14.02.2022, the same is yet to bedisposed of, therefore, direction may be given to therespondent/Assessing Authority to decide the said applicationseeking for stay under Section 220(6) of the Act, before which,let the notice issued, which is impugned hereunder, underSection 226(3) of the Act can be kept aside or set aside with adirection to the respondent to lift the attachment made againstthe bank account of the petitioner. 5. However, Mrs.Hema Muralikrishnan, learned SeniorStanding Counsel, who accepts notice, would submit that, thepetitioner from 2019 onwards, though filed an appeal before theAppellate Authority in January 2020, has not chosen to file anyapplication under Section 220(6) of the Act. Now only just aweek before or a fortnight, he has come forward to file thisapplication on 14.02.2022, therefore, at the earliest, the samewould be decided on merits by the Assessing Authority. 6. Nevertheless insofar as the notice issued under Section226(3) of the Act is concerned, i.e., impugned herein, there canbe no impediment for the Assessing Authority to proceed under 5. However, Mrs.Hema Muralikrishnan, learned SeniorStanding Counsel, who accepts notice, would submit that, thepetitioner from 2019 onwards, though filed an appeal before theAppellate Authority in January 2020, has not chosen to file anyapplication under Section 220(6) of the Act. Now only just aweek before or a fortnight, he has come forward to file thisapplication on 14.02.2022, therefore, at the earliest, the samewould be decided on merits by the Assessing Authority. 6. Nevertheless insofar as the notice issued under Section226(3) of the Act is concerned, i.e., impugned herein, there canbe no impediment for the Assessing Authority to proceed under the said notice. Therefore, it does not require any interferencefrom this Court, because, absolutely there is no stay granted bythe Appellate Authority against the due payable by thepetitioner, only the petitioner has not chosen to file anyapplication seeking for any stay within the meaning of Section220(6) of the Act, therefore, the learned Standing Counsel seeksdismissal of this writ petition. 7. I have considered the rival submissions made by thelearned counsel for both sides and have perused the materialsplaced before this Court. 8. As has been rightly pointed out by the learned StandingCounsel appearing for the respondent Revenue, the petitioneradmittedly has chosen to file the application under Section 220(6) of the Act only on 14.02.2022, before which, on 09.02.2022this notice under Section 226(3) of the Act was issued.Therefore, considering these factual matrix, where, the appealhas been filed and it is pending for nearly two years and more,where, according to the learned counsel for the petitioner, thearguments were heard, at this juncture, the Assessing Authoritycan very well consider the application submitted by thepetitioner dated 14.02.2022 made under Section 220(6) of the Actfor making any interim arrangement and in that view of thematter, this Court is inclined to dispose of this writ petitionwith the following orders: (i) That there shall be a direction to therespondent Assessing Authority to consider and passorders on the application dated 14.02.2022 filed by thepetitioner under Section 220(6) of the Act and decidethe same on merits and in accordance with law within aperiod of one week from the date of receipt of a copyof this order. (ii) It is needless to mention that, dependingupon the outcome of the orders to be passed in the stayapplication by the Assessing Authority, the furthercourse of action pursuant to the impugned notice dated09.02.2022 can also be decided and proceededaccordingly. 9. With this direction, this Writ Petition is disposed of.No costs. Consequently, connected miscellaneous petitions areclosed. Sd/-Assistant Registrar(CS-VII) // True Copy // Sgl Sub Assistant Registrar To1.The Income Tax Officer, Non Corporate Ward 19(4), No.121, Mahatma Gandhi Road, Nungambakkam, Chennai – 600 034.2.The Commissioner of Income Tax (Appeals)-12, No.46, Mahatma Gandhi Road, Chennai – 600 034.3.The Branch Manager, Standard Chartered Bank Sagas Amar Court 59 G.N. Chetty Road, T.Nagar, Chennai – 600 017.+1cc to M/s.Hema Muralikrishnan, Advocate Sr.No.13242+1cc to Mr.Lenin, Advocate Sr.No.13604 W.P.No.4230 of 2022 MG(CO)RVM(03/03/2022)