Madras HC Orders Income Tax Department to Dispose 4-Year Pending Appeal within 6 Months [Read Order
The court found it inappropriate to entertain the writ petition against the attachment notice as an appeal was already pending before the appellate authority.
The Madras High Court has ordered the Income Tax Department to expedite and dispose of an appeal that has been pending for 4 years before the Commissioner of Income Tax (Appeals) [CIT(A)]. The petitioner, who sought the lifting of attachments on four bank accounts, had their plea deferred as the case is already under the jurisdiction of the CIT(A). The petitioner, Geetha Nehru filed the...
The Madras High Court has ordered the Income Tax Department to expedite and dispose of an appeal that has been pending for 4 years before the Commissioner of Income Tax (Appeals) [CIT(A)]. The petitioner, who sought the lifting of attachments on four bank accounts, had their plea deferred as the case is already under the jurisdiction of the CIT(A).
The petitioner, Geetha Nehru filed the writ petition challenging a bank attachment notice under Section 226(3) of the Income Tax Act, 1961. The petitioner was subjected to an assessment order on December 25, 2019, which they subsequently appealed before the Commissioner of Income Tax (Appeals) on January 24, 2020.
Despite nearly four years passing, the petitioner contended that this appeal remains unresolved.
The petitioner's counsel submitted that four of the petitioner's bank accounts were previously attached by the department, and now, the bank account in the second respondent bank-Indian Overseas Bank has also been attached by the impugned order. The counsel argued that this action would severely disrupt the petitioner's business operations unless the impugned order is overturned.
Dr. B. Ramaswamy, senior standing counsel for the first respondent, stated that the petitioner had not submitted an application for an interim stay before the appellate authority. He assured that any such application would be processed and decided in accordance with the law. Given that the statutory appeal is pending before the appellate authority, Dr. Ramaswamy argued that the court should refrain from exercising its jurisdiction over this matter.
The bench of Justice Senthilkumar Ramamoorthy noted that the statutory appeal against the assessment order is still pending before the Commissioner of Income Tax (Appeals), and there is no evidence to suggest that the petitioner filed a stay application with the appellate authority.
The court found it inappropriate to entertain the writ petition against the attachment notice as an appeal was already pending before the appellate authority. However, considering the prolonged pendency of the appeal since 2020, the court deemed it just and appropriate for the appeal to be resolved promptly.
Thus, the High Court directed the respondent-income tax authorities to dispose of the appeal within 6 months. It was also directed that the petitioner can file a miscellaneous application seeking interim relief before the appellate authority.
Mr.R.Swarnavel appeared for the petitioner.
To Read the full text of the Order CLICK HERE
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