Wp/17123/2025 Of Mr. Atul Sharma v. The Assistant Commissioner Of Income Tax

HIGH COURT FOR THE STATE OF TELANGANAAT HYDERABAD(Special Original Jurisdiction) FRIDAY, THE TWENTIETH DAY OF JUNETWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE [P.SA.M ]KOSHYANDTHE HONOURABLE SRI JUSTICE NARSING WRIT PETITION NO: 17123 OF 2025 Between: tVlr. Atul Sharma, S/o Mr. Ramchandra Sharma, aged 52 [years, ]Occ.. [Private]390007, Gujarat, Former Employee, [, ]R/o A-40'l , Nilambhar Balissimo, resident of. Flat No.. 505, [Vasna ][Road, ][Pegasus ][Vadodara ][Wing,][-]Meenakshi's Sky Lounge, Khanamet, Hyderabad [- ]500084, ,",lln€fft,Or=* AND 1. The Assistant Commissioner of lncome Tax, Circle [12(1), ][Hyderabad,]Aayakar Bhavan, opposrte to LB Stadium, Basheerbagh, [Hyderabad - ][500]004, Telangana.Aayakar Bhavan, opposrte to LB Stadium, Basheerbagh, [Hyderabad - ][500]004, Telangana. 2. The lncome Tax Officer, Ward 12(1), Hyderabad, [Aayakar Bhavan, opposite]to LB Stadium, Basheerbagh, Hyderabad - 500 004, Telangana.to LB Stadium, Basheerbagh, Hyderabad - 500 004, Telangana.3. Assessment Unit, lncome Tax Department, National e-Assessment Center,New Delhi, Room No.. 401 ,Znd Floor, E-Ramp, Jawaharlal Nehru Stadium,New Delhi - ['l ]10 003.New Delhi, Room No.. 401 ,Znd Floor, E-Ramp, Jawaharlal Nehru Stadium,New Delhi - ['l ]10 003.4. The Principal Commissioner of lncome Tax [- ]1, Hyderabad l.T.Towers, ACGuards, lVlasab Tank, Hyderabad [[- ]]500 004, Telangana.Guards, lVlasab Tank, Hyderabad [[- ]]500 004, Telangana. [[- ]]5. The Joint Commissioner, [(Appeals) ]/ the Commissioner of lncome Tax(Appeals), National Faceless Appeal Centre, Delhi, Through the PrincipalChief Commissioner of lncome Tax [(NaFAC), ]Delhi, North Block, New Delhi [-]1'10 001(Appeals), National Faceless Appeal Centre, Delhi, Through the PrincipalChief Commissioner of lncome Tax [(NaFAC), ]Delhi, North Block, New Delhi [-]1'10 001 6. The Central Board of Direct Taxes, Represented by its Chairman, Departmentof Revenue, Ministry of Finance, Government of lndia, Secretariat Buildings,New Delhi - 110 001 [.]of Revenue, Ministry of Finance, Government of lndia, Secretariat Buildings,New Delhi - 110 001 [.]7. M/s HDFC Bank Limited, HDFC Bank House, Senapati BAP at Marg, LowerParel' Mumbai ...RESP.NDENTSParel' Mumbai ...RESP.NDENTS Petition under Article 226 of the Constitution of lndia [praying ]that in thecircumstances stated in the affidavit filed therewith, the High Court may bepleased to issue a Writ of Mandamus or any on this appropriate Writ, Order orDirection, declaring. a. the order passed by the ['l ]st Respondent, vide DIN andLetter No. ITBA/COM/F/1712024-2511070793291(1), dated 02.12.2024, in rejectingthe stay application filed by the Petitioner, pending disposal of the appeal of thePetitioner before the 1st Appellate Authority, i.e., the Sth Respondent herein. forthe Assessment Year 20'18 - 19. b. the [garnishee ]notice issued by the 1stRespondent, dated 29.04.2025, vide DIN and Notice No.. ITBA/RCV/S/226(3) -112025-2611075872286(1), [uls ][226(3) ][of the ][rncome Tax ][Arf, ]['rg61, ]attaching thebank account of the Petitioner held with Respondent No.. 7, i.e, the banker oi thePetitioner, as arhritrary, illegal, bad in law, void-ab-initio, violative of the principlesof natural justice apart from being violative of Articles 14, 19(1Xg) and zos of treconstitution of lndia a nd Sec 148A of the lncome Tax Act, 1 !161 , ind consequenflyset-aside the sane and grant stay of recovery, pending disprrsal of the petitioner'sappeal before thr: 1st Appellate Authority, in the interests of .j-rstice. lA NO: 1 OF 2025 -112025-2611075872286(1), [uls ][226(3) ][of the ][rncome Tax ][Arf, ]['rg61, ]attaching thebank account of the Petitioner held with Respondent No.. 7, i.e, the banker oi thePetitioner, as arhritrary, illegal, bad in law, void-ab-initio, violative of the principlesof natural justice apart from being violative of Articles 14, 19(1Xg) and zos of treconstitution of lndia a nd Sec 148A of the lncome Tax Act, 1 !161 , ind consequenflyset-aside the sane and grant stay of recovery, pending disprrsal of the petitioner'sappeal before thr: 1st Appellate Authority, in the interests of .j-rstice. lA NO: 1 OF 2025 Petition under Section 151 cpc praying that in the ci-cumstances stated inthe affidavit filed in support of the petition, the High court rray be pleased to stayall further procer:dings, including any recovery, pursuant kr vide DIN and LetterNo.. ITBA/COMlFl17l2j24-25t1070753291(1), dated 02.12.2024, in rejecring thestay application filed by the Petitioner, seeking a blanket s ay of the outstandingdemand, pending disposal of the appeal of the petitioner be fore the 1st AppellateAuthority, i.e., the Sth Respondent herein. for the Assessrnent year 201g - 19.pending disposal of the above writ petition, pending dispc sal of the above writPetition. lA NO: 2 OF 2025 Petition under Section 151 cPC praying that in the circumstances stated inthe affidavit filed in support of the petition, the High court may be pleased tosuspend the garnishee notices issued by the 1st Respondernt. dated 29.04.2025,vide DIN and Notice No. ITBA/RCVtSt226(3)_jt2o25-ntfi75872286(1), u/s226(3) of the lnr;ome Tax Act, 1961, attaching the bank acrount of the petitionerheld with Respondent No.. 7, i.e., the banker of the petitioner. Counsel for the Petitioner: SRI A.V.A.SIVA KARTIKEYACounsel for the Respondent Nos.1 TO 6: M/s. BOKARO S/\pNA REDDy,SENIOR SC INCOME TAXTAX SC INCOME TAXTAX Counsel for the Respondent No.7: -- The Court made the following: ORDER ./''' THE HONOURABLE SRI JUSTTCE P.SAM KOSHYANDTHE HONOURABLE SRI JUSTICE NARSING RAONANDIKONDAW.P.No.17123 OF 2025 ORDER, lper Hon'ble Sri Justice P.Sam Koshy) Heard Mr. A.V.A.Siva Kartikeya, learned counsel for the petitioner and Ms.B. Sapna Reddy, learned Senior StandingCounsel for the Income Tax Department for respondent Nos.1 to 6.Perused the record.Counsel for the Income Tax Department for respondent Nos.1 to 6.Perused the record. 2. The present writ petition has been filed assailing the orderdated 02.12.2024 rejecting the stay application of the petitioner,pending disposal of the appeal before the first Appellate Authorityfor the assessment year 2018-19 and the garnishee notice issuedby respondent No.l dated 29.04.2025 to respondent No.7 i.e., thebanker of the petitioner 3. The petitioner herein had filed statutory petitioner herein had filed statutory had filed statutory filed statutory statutory remedy of anof ananappeal under Section 246A of the Income Tax Act, 196l (forshort, the 'Act') before the Appeltate Authority along with theMemo of Appeal. The petitioner had also preferredlntenmprotection so far as the recovery proceedings are concemed under The petitioner herein had filed statutory petitioner herein had filed statutory had filed statutory filed statutory statutory remedy of anof anan Section 2,20(6) of the Act. It is this application which standsdecided by the impugned order. 3. The petitioner herein had filed statutory petitioner herein had filed statutory had filed statutory filed statutory statutory remedy of anof ananappeal under Section 246A of the Income Tax Act, 196l (forshort, the 'Act') before the Appeltate Authority along with theMemo of Appeal. The petitioner had also preferredlntenmprotection so far as the recovery proceedings are concemed under The petitioner herein had filed statutory petitioner herein had filed statutory had filed statutory filed statutory statutory remedy of anof anan Section 2,20(6) of the Act. It is this application which standsdecided by the impugned order. 4. The contention of the leamed counsel for t rc petitioner isthat the assessment order dated 08.12. 2023 itsell in the light of theDivision Bench of this Court in the case of Kankanala RavindraReddy vs. Income Tax Officerr, is not sustainab e as the noticeunder Section I 48 was issued by the jurisdicti.tnal AssessingOfflcer, [.,vhereas, ]as per the amended provision c,1'the Act, thatought to had been issued in the faceless manner. In the light of theaforesaid decision, there is all likelihood of the appeal pendingbefore the Appellate Authority also having the szrme fate of theAssessmr:nt Order not being maintainable and being set aside.5. In thc light of the subsequent amendments brought in theAct as also in the light of the decision rendered bv the Hon'bteSupreme Court in the case of Union of tndia & ors., v. AshishAgarwat and others2, the Assessing Authority ought to had ' 120231 156 taxIn"nn.com 178(TELANGANA)2022 SCC CnLine 5C 5432022 SCC CnLine 5C 543 .Y' \ granted interim protection to the Assessee till finalization of theappeal which the Assessing Authority has not considered. 6. The contention of the leamed counsel for the petitioner sofar as the 148 notice issued by the jurisdictional Assessing Officernot being in dispute by the leamed Standing Counsel for theDepartment and also in the light of the aforesaid judgmentsrendered by this Court in the case of Kankanala Ravindra Reddy(supra 1) and in the light of the judgment of the Hon'ble Supreme \Court in case of Ashish Agarrval (supra 2), rve are of theconsidered opinion that the Assessing Authority in the course oldeciding the petition under Section 220(6) of the Act, ought tohave taken a more pragmatic view and should had kept therecovery proceedings in abeyance, pending the appeal before theAppellate Authority I 7. For the aforesaid reasons, we dispose of the present writpetition at this [juncture ]directing the Assessing Officer not topursue with the recovery proceedings in terms of the impugnedorder dated 02.12.2024 till the appeal for the assessment year2018-19 is finally decided. ,tr 8. Considering the fact that the appeal was filed in [the ][year]2021, we expect that the Appellate Authority shall [take ][up ][the]appeal and decide the same as expeditiously as [possible. ][There]shall be no ordcr as to costs. Consequcntly, miscellaneous applications, [pi:nding ]if [any,] shall stand closcd. Sd/- K. AMMAJIDEPUTY REGISTRAR\,. SECTION OFFICER ,TRUE COPY// Tol1 . The Assistant Commissioner of lncome fax, CircteU(t ), Hyderabad,Aayakar Bhavan, opposite to LB Stadium, Basheerbagl , Hyderabad [- ]500004, Telangana.Aayakar Bhavan, opposite to LB Stadium, Basheerbagl , Hyderabad [- ]500004, Telangana. 2. The lncome Tax Officer, Ward 12(1), Hyderabad, Aayallar Bhavan, oppositeto LB Stadium, Basheerbagh, Hyderabad [- ]500 004, Telangana.to LB Stadium, Basheerbagh, Hyderabad [- ]500 004, Telangana.3. Assessment Unit, lncome Tax Depa(ment, National e-l\ssessment Center,New Delhi, Room No.. 401 ,2nd Floor, E-Ramp, Jawah;:rlal Nehru Stadium,New Delhi - 1 10 003.New Delhi, Room No.. 401 ,2nd Floor, E-Ramp, Jawah;:rlal Nehru Stadium,New Delhi - 1 10 003.4. The Principal Commissionerof lncomeTax- 1, Hyderarad l.T.Towers, ACGuards, [t/]asab Tank, Hyderabad - 500 004, Telangana.Guards, [t/]asab Tank, Hyderabad - 500 004, Telangana. 2. The lncome Tax Officer, Ward 12(1), Hyderabad, Aayallar Bhavan, oppositeto LB Stadium, Basheerbagh, Hyderabad [- ]500 004, Telangana.to LB Stadium, Basheerbagh, Hyderabad [- ]500 004, Telangana.3. Assessment Unit, lncome Tax Depa(ment, National e-l\ssessment Center,New Delhi, Room No.. 401 ,2nd Floor, E-Ramp, Jawah;:rlal Nehru Stadium,New Delhi - 1 10 003.New Delhi, Room No.. 401 ,2nd Floor, E-Ramp, Jawah;:rlal Nehru Stadium,New Delhi - 1 10 003.4. The Principal Commissionerof lncomeTax- 1, Hyderarad l.T.Towers, ACGuards, [t/]asab Tank, Hyderabad - 500 004, Telangana.Guards, [t/]asab Tank, Hyderabad - 500 004, Telangana. 5. The Joint Commissioner, (Appeals) / the Commissioner of lncome Tax(Appeals), National Faceless Appeal Centre, Delhi, Thrcugh the PrincipalChief Commissioner of lncome Tax (NaFAC), Delhi, Nc rth Block, New Delhi [-]1 10 001(Appeals), National Faceless Appeal Centre, Delhi, Thrcugh the PrincipalChief Commissioner of lncome Tax (NaFAC), Delhi, Nc rth Block, New Delhi [-]1 10 001 6. The Central Board of Direct Taxes, Represented by its Chairman, Departmentof Revenue, Ministry of Finance, Government of lndia, Secretariat Buildings,New Delhi - ['l ]10 00'1 .of Revenue, Ministry of Finance, Government of lndia, Secretariat Buildings,New Delhi - ['l ]10 00'1 . 7. M/s HDFC Bank Limited, HDFC Bank House, Senapati BAP at Marg, Lower- .Parel, fvlumbai.Parel, fvlumbai. 8. One CC to SRI A.V A.SIVA KARTIKEYA, Advocate [OI)UC] 9. One CC to M/s. BOKARO SAPNA REDDY, SENIOR SC INCOME TAXloPUClloPUCl10. Two CD Copies PSKPVLPVL -t : HIGH COURT DATED:2010612025 (o(r1 ' aa..'.f,t:'-)ti [-)]11 SEP [2025]iir\ o",rnr \-I Cr'i ' ORDER WP.No.17123 of 2025 DISPOSING OF THE WRIT PETITIONWITHOUT COSTS o6 Ar{6