Wp/1728/2025 Of M/S. Unique Engineering Enterprises Pvt. Ltd v. Assistant Commissioner Of Income Tax

IN THE HIGH COURT FORAT HYDERIB1fE (Special Originat Jurisaictionl THURSDAY, THE TWENry THIRD _rVrV}rVC DAY OF JANUARY''"^'TWO THOUSAND AND PRESENT THE HONOURABLE SRI J-USTICE P. SAM KOSHYTHE HoNoURABLE S RI .IusncA[?TvTAvARAP U RAJ ES HWAR RAoWRIT PETIT]ON NO:1728 0F 2025 Between: hT+pffifli [jift1[:{f,-Li',n[i;';#ilih::ir,,T"#{tufrit*] ...PETITlONER AND 'Sill"g"$fl#,1.rrTriill,".:#I*:*",m#iltl.n':+.[f lfii{,,.,.lfii{,,.,. lfii{,,.,., tncome rax fi;?::ii$r#1, Department, Ministry of Finance, Governmentfi;?::ii$r#1, Department, Ministry of Finance, Government 3 S8fililnissioner [of lncome ][Tax ][(Appeats),Nationat ][Facetess ]Appeat centre, t H"'i.? 33J,1; S?lB#': 3rg5g,'%,f# jl?', [ra ][ra ][d ][i ][se ][c ][i ][rc ][re, ]s a roj in i De vi 'l?'.?,';,ft "[?'#;l1nl#s,Jfi:86.;rr*rijl,;,jfl:l,oppJunaNasar,"[?'#;l1nl#s,Jfi:86.;rr*rijl,;,jfl:l,oppJunaNasar, '*i*1"*,:tif :HH'oT#3',",IJSbU,t?A,"1'&:jgl[*iy;=u",I,,y,ff , ...RESPONDENTS or pleased circumsrances Petition to issue a under stated writ, Articre in direction tne 226--of the amJariiJi;;'ftHilh, o,. ori"i constitution ,ioiu"pl.ti"rrray of the rndia in High the praying nature court that of may in i writthebeaccounts mandamus decraring of the petition", the action or n"rpo,io!ii''r.ro. r in attaching the bankdated Nos' 50200012s80186 08-0 1 -2025 bearino ,ia ly^i..:yin&rr"i!t." pLI +zzsooob!;;;;;rffi;d tq ireA/coiliFlii)Lozo-zs ru.trces u/s.226(3) with r,, Responoent o, 1 e7 536 of the Act 1 [(1 ]No.'+1,| [( ]N ailc DIN No. rrBA/coM/F/17t2o24-25t1o71e82e63(1) [(A/c ][No ]-1?19-9?9.01^6j4maintained with [Respond".,t- ]-ozosszo)eql [No' ][5) ][and ][OiU ][r'to ] [712024-]and 33646441970 [maintained ][with]25t1071g75417(1) [(A/c ][No.. ]n"rJonJ"nt [ruo. ][6) ior ][t""o,"|.y ][of dues ][forthe1Y' ][2022'23 during ][the ][pendency]oftheappealsandstayrppti"utlonbeforetheRespondentNo3asbeingillegal'authoriif oiiaw, [viotative. ][of ][Article 14 ][and ][19(1Xg) ][of ][the]"roiiirrv,'*iinout Constitutionoflndia,no,uioruti,",ofprovisionsof.lncomeTaxAct,l96land'direct ResponJ"nt [r.ro. ][r ][to unfreeze the ][bank ][accounts forthwith.]"*."q;Lntrv, IA NO: 10F [2025] PetitionunderSectionlSlcPCprayingthatinthecircumstancesstatedinthe affidavit [filed ][in ][support ][of ][the ][peiition, ][ine ][nign ][Court ][may be ][plea.sed ][to]oi [earnisf,ee ][irtotices ][issued u/s.226(3) ][of ][the Act all daled];#;;; operation oe-5i-z-gis [bearing DtN ][No. ] [712024-2511071975361(1) ][(A/c ][Nos']iOZOOOrZSaOf86 [Jnd ][422560005551 maintained ][with ][Respondent ][No.4), ] r.rl.liarucoN,l [tFt1712024-;511071982963(1) ][(a/9 ] [131805001664 ][maintained]*itr, n.rponaent [No. ][Sl ano orN ][No. ][tieA/col/lFt17l2o24-2511071975417(1)](A/c Nos. 62053702847 uno ieo+o++ts70 [maintained ][with ][Respondent ][No. 6) ][for]of [dues for ][the ][AY. ][2022-23 ][']i""or"ry Counsel for [the Petitioner: ][Ms. ][K' ][PRABHABATI REP' ] SRI A.V. RAGHU Gounsel forthe [Respondent ][No.1 ][& ][3: ][Ms' ][J' ][SUNITHA']JR. SC FOR Counsel for [the Respondent ][No.4 ][to ][6: ][- ][''-] The Court made [the ][following: ] THE HONOURABLE SRTJUSTICE P.SAM KOSHYANDTHE HONOURABLE SRI JUSTICE NAMAVARAPURAJESHWAR RAOW.P.No.1728 OF 2025 ORDER; @er Hon'ble Sri.Iustice p.Sam Koshy) Heard Ms. K.Prabhabati, learned counsel representing Counsel for [the Petitioner: ][Ms. ][K' ][PRABHABATI REP' ] SRI A.V. RAGHU Gounsel forthe [Respondent ][No.1 ][& ][3: ][Ms' ][J' ][SUNITHA']JR. SC FOR Counsel for [the Respondent ][No.4 ][to ][6: ][- ][''-] The Court made [the ][following: ] THE HONOURABLE SRTJUSTICE P.SAM KOSHYANDTHE HONOURABLE SRI JUSTICE NAMAVARAPURAJESHWAR RAOW.P.No.1728 OF 2025 ORDER; @er Hon'ble Sri.Iustice p.Sam Koshy) Heard Ms. K.Prabhabati, learned counsel representing Mr. A. V.Raghu Ram, leamed counsel for the petitioner andMs. J.Sunitha, learned Junior Standing Counsel for Income Taxfor respondents Nos. 1 to 3. Perused the record.2. The challenge in the present writ petition is to the actionon the part of respondent No.I in using gamishee noticesdated 08.01.2025 attaching the bank accounts of the petitionerbearing DIN No.ITBA/COM/Ftt7/2024-25/tO7Igt536t(t)(Nc Nos. 50200012980186 and 422560005551 maintainedwith respondent No. 4), DIN No. ITBA/COM/F|I7|2O24-2511071982963(l) (Nc No.131805001664 mainrained withrespondent No. 5) and DIN No.ITBA/COM/F/1712024-25/1071975417(l) (Nc Nos. 62053702847 and, 3364644t970maintained with respondent No.6). The said garnishee noticesseems to have been issued pursuant to an assessment order for the assessment [year ][2022-23 ][and ][the ][order ][of ][assessment ][is ][dated]27.03.2024 [and ][a ][subsequent ][penalty ][order dated ][17'09'2024 ][has]been [passed. ][Being ][aggrieved ][by ][the ][assessment ][order ][and ][the]order of [penatty ][passed ][by ][respondent ][No'2' ][the petitioner ][herein]had preferred [two ][appeals ][before ][respondent ][No'3 ][on ][18'04'2024]atong [with ][a ][smy ][application' ][Both ][the ][appeal ][as ][well ][as ][the ][stay]application [is stitl ][pending consideration before ][respondent ][No'3']Meanwhili, [the ][respondents ][have ][now ][issued ][the ][said ][impugned]garnishee notlces.3. The learned [counsel ][for ][the ][petitioner ][submits ][that ][in ][the]event if [the ][garnishee notices ][are ][not ][set ][aside at this ][juncture' ][the]petitioner [would ][be put ][to ][substantial inconvenience ][so ][far ][as]operating [the business is ][concerned' ][Further' the ][fact ][that ][the ][right]to appeal [having ][been ][availed ][by the ][petitioner' the ][respondents]should [not ][have ][invoked ][coercive ][steps ][in ][between']4. The leanled [counsel ][for ][the ][petitioner relied ][upon ][a ][couple ][of]decisions [of ][the ][Division ][Bench ][of ][this High ][court ][decided ][in ][the]recent past [i.e., order ][passed ][in ][W'P'No'30496 ][of ][2021 decided ][on]03.01.2022 [and ][also ][the ][order ][passed ][in ][W'P'No ][1673 ][of ][2022] decided on 17.01 .2022 wherein under similar set of circumstances,the Division Bench had granted interim protection while disposingof the writ petitions directing the respondent-authorities to decidethe appeal and stay application first before initiating proceedingsissuing gamishee notice.of the writ petitions directing the respondent-authorities to decidethe appeal and stay application first before initiating proceedingsissuing gamishee notice. 5. l{aving heard the contentions put-forth on either side and thefacts and circumstances of the case, particularly taking note of thefact that challenging the order of assessment dated 27.03.2024 asalso rhe order of penalty dated. 17.09.2024, the petitioner hadirnmediately preferred appeal along with the stay application.Both the appeal as well as the stay application is still pendingconsideration before respondent No.3. Even in the stay petition,more than I 0 months have passed, till date the same has not beendecided neither is there any progress in the appeal. 6. In the said circumstances, when the petitioner has availedhis right of appeal along with the petition for grant of stay, it wasincumbent upon the authorities to take up the stay application anddecide the same at the first instance or decide the appeal itself asexpeditiousty as possible rather than sitting over the appeal on the 6. In the said circumstances, when the petitioner has availedhis right of appeal along with the petition for grant of stay, it wasincumbent upon the authorities to take up the stay application anddecide the same at the first instance or decide the appeal itself asexpeditiousty as possible rather than sitting over the appeal on the one hand and at [the ][same ][time ][initiating ][steps ][for ][getting ][the order]of assessment and [the order ][of ][penalty ][being executed ][by ][resorling]to coerclve steps. 7. For the said reason, [we ][are ][the ][considered ][opinion that ][the]impugned [garnish notice ][dated ][08.01 ][.2025 ][to ][the aforesaid extent ][is]not sustainable and [the ][same ][deserves ][to ][be ][and is, ][accordingly' ][set]aside. The respondents [are ][directed ][to ][take ][up ][the ][appeal ][as ][well ][as]the stay application [at ][the ][first ][stance and thereafter proceed in]accordance with [law.] 8. The writ petition is, [accordingly, ][disposed ][of. ][There shall ][be]no order as to costs. Consequentll,, miscellaneous [petitions ][pending, ][if ][any, shall] stand closed. SD/-A.V,S. PRASADASSISTANT REGISTRARTtON OFFICER"tTg*gE' //TRUE COPY// To,1. ' Assistant Commissioner of lncome Tax, Circle B(1)' Signature Tg*gE'$.N;sii'l of Kondapur, Sv.No.37(P) of Kothaguda, opp' B-otanical Gardens'6liiri"b:i*oiitv iut- h.n. Distrlct, [Hvilerabad' ][Telangana - 500084']1. ' Assistant Commissioner of lncome Tax, Circle B(1)' Signature Tg*gE'$.N;sii'l of Kondapur, Sv.No.37(P) of Kothaguda, opp' B-otanical Gardens'6liiri"b:i*oiitv iut- h.n. Distrlct, [Hvilerabad' ][Telangana - 500084'] 2. X;;"];;[iu'nii, i'ncom. [Tax Depdrtment, Ministry of Finance' Govemment]of lndia, New Delhiof lndia, New Delhi3c#;G;i;.;oi tn"om" Tax [(Appeals),National Faceless Appeal Centre']Delhi,Delhi,4[b-Fb ernk, Usha Kiran [Complex, GR Floor, Paradise Circle, Sarojini ][Devi]Road, Secunderabad [- 500003, Telangana.]Road, Secunderabad [- 500003, Telangana.]5iCtCt ['eink, ][plot ]No.13, [H.No.10-29/15Subhash ][Nagar, Opp. Juna ][Nagar,]Kushaiouda. Kapra, R.R. [District ][- ][500062' Telangana.]Kushaiouda. Kapra, R.R. [District ][- ][500062' Telangana.]6SA; [g"";fti ]inEii, uoAi [square, ][Plot ][No.3tu3B:cFC ][Phase ][V, ] [Nasar ][X]Roads, Cherlapally, [R.R. District ][- 50005't ]'Roads, Cherlapally, [R.R. District ][- 50005't ]'7one Cb to SRi R.V. [RAM, ][Advocate ][oPUC] 7IITwo CD CopiesBNBS FTIITwo CD CopiesBNBS FT One CC to Ms. J. SUNITHA, [JR. ] [ ] HIGH COURT DATED:2310112025 :-:_-::t i-. -'l'ORDERlr.l,l. ,'u3u--iWP.No.1728 ot [2025]\ \i::SPI,:i i[.,,] DISPOSING OF WITHOUT COSTS c{,?'b$Y4.1.w