Wp/27008/2024 Of Practo Technologies Private Limited v. The Deputy Commissioner Of Income Tax

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 29 DAY OF OCTOBER, 2024 BEFORE THE HON'BLE MR JUSTICE M.I.ARUN -WRIT PETITION NO. 27008 OF 2024 (TIT) BETWEEN: - 2 - THIS PETITION IS FILED UNDER ARTICLES 226 & 227 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH THE NOTICE DATED 26.09.2024 ISSUED UNDER SECTION 226(3) OF THE INCOME TAX ACT, 1961 BY RESPONDENT NO.1 TO THE BRANCH MANAGER, HDFC BANK, J.P. NAGAR 2 PHASE, BENGALURU BEARING DIN & NOTICE NO.ITBA/COM/F/17/2024-25/1069108994(1) FOR ATTACHMENT OF BANK ACCOUNT NUMBERS 1332560000705 AND 1332320001144 BELONGING TO THE PETITIONER HEREIN MARKED AS ANNEXURE - A1 AND ETC. THIS PETITION COMING ON FOR PRELIMINARY HEARING, THROUGH PHYSICAL HEARING/VIDEO CONFERENCING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE M.I.ARUN ORAL ORDER 1. The revenue passed an assessment order dated 17.01.2024 for the assessment year 2015-16 which is modified as per rectification order dated 02.07.2024 vide Annexure-F to the writ petition. Aggrieved by the same, the assessee preferred an appeal before Income Tax Appellate Tribunal, Bengaluru. Before the tribunal, petitioner also moved an application for staying the recovery of demand. When the matter was pending before the tribunal, the assessing officer-respondent No.1 issued notices under Section 226(3) of the Income Tax Act, 1961 - 3 - NC: 2024:KHC:43519 (for short 'the Act') to various banks, in which, the petitioner had bank accounts and sought to attach the same to recover the amounts due as per the assessment order. Aggrieved by the same, present writ petition is filed. 2. During pendency of the writ petition, pursuant to the impugned order dated 30.09.2024, respondent No.1 has passed an order dated 08.10.2024 permitting the petitioner to pay 20% of the dues in installments and staying the recovery of balance amount in the light of petitioner preferring an appeal before Income Tax Appellate Tribunal. Further, the interim application filed by the petitioner before Income Tax Appellate Tribunal has been considered and an order has been passed on 10.10.2024, wherein, it has been ordered to adjust the refund payable to the assessee for the assessment year 2017-18 towards 20% dues that the assessee is required to deposit. 3. Admittedly, impugned notices issued under Section 226(3) of the Act have been issued pursuant to the assessment order dated 17.01.2024 which has been subsequently modified. The order passed by respondent No.1 dated 08.10.2024 and the order passed by Income Tax Appellate Tribunal dated 10.10.2024 have effect of staying the assessment order passed in respect of assessment year 2015-16 subject to petitioner depositing 20% of the amount in installments. In the light of the same, question of attaching the bank accounts of petitioner does not survive and the impugned notices issued under Section 226(3) of the Act have to be set aside. 4. Hence, the following: ORDER i) The impugned notice dated 26.09.2024 bearing DIN & Notice ITBA/COM/F/17/2024-25/1069108994(1) issued by respondent No.1 to the Branch Manager, HDFC No.37/953, 24th 25/1069108994(1) issued by respondent No.1 to the Branch Manager, HDFC No.37/953, 24th Main, J.P.Nagar, II Phase, Bengaluru-560 078, Karnataka, India, vide Annexure-A1 to the writ petition is hereby set aside; ii) The impugned notice dated 26.09.2024 bearing DIN & Notice ITBA/COM/F/17/2024-25/1069109349(1) issued by respondent No.1 25/1069109349(1) issued by respondent No.1 to the Branch Manager, ICICI Bank Ltd., No.584, 80 Ft Road, Opp. Bethany High, Koramangala 8th Block, Bengaluru-560 095, Karnataka, India, vide Annexure-A2 to the writ petition is hereby set aside; No.584, 80 Ft Road, Opp. Bethany High, Koramangala 8th Block, Bengaluru-560 095, Karnataka, India, vide Annexure-A2 to the writ petition is hereby set aside; iii) The impugned notice dated 26.09.2024 bearing Main, J.P.Nagar, II Phase, Bengaluru-560 078, Karnataka, India, vide Annexure-A1 to the writ petition is hereby set aside; ii) The impugned notice dated 26.09.2024 bearing DIN & Notice ITBA/COM/F/17/2024-25/1069109349(1) issued by respondent No.1 25/1069109349(1) issued by respondent No.1 to the Branch Manager, ICICI Bank Ltd., No.584, 80 Ft Road, Opp. Bethany High, Koramangala 8th Block, Bengaluru-560 095, Karnataka, India, vide Annexure-A2 to the writ petition is hereby set aside; No.584, 80 Ft Road, Opp. Bethany High, Koramangala 8th Block, Bengaluru-560 095, Karnataka, India, vide Annexure-A2 to the writ petition is hereby set aside; iii) The impugned notice dated 26.09.2024 bearing DIN & Notice ITBA/COM/F/17/2024-25/1069109905(1) issued by respondent No.1 to the Manager, Yes Bank Ltd., Ground Floor, Prestige Obelisk, Municipal No.3, Kasturba Road, Bengaluru, Bengaluru-560 001, Karnataka, India, vide Annexure-A3 to the writ petition is hereby set aside; 25/1069109905(1) issued by respondent No.1 to the Manager, Yes Bank Ltd., Ground Floor, Prestige Obelisk, Municipal No.3, Kasturba Road, Bengaluru, Bengaluru-560 001, Karnataka, India, vide Annexure-A3 to the writ petition is hereby set aside; iv) The impugned notice dated 26.09.2024 bearing DIN & Notice ITBA/COM/F/17/2024-25/1069110165(1) issued by respondent No.1 to the Branch Manager, City Bank, #506-507, Level 5, Prestige Meridian 2, #30 M.G.Road, M.G.Road, Bengaluru, Bengaluru-560 001, Karnataka, India, vide Annexure-A4 to the writ petition is hereby set aside; v) Accordingly, the writ petition is disposed of. SD/- (M.I.ARUN) JUDGE PGG List No.: 1 Sl No.: 13