INCOME TAX ACT, 1961

Section 222

Recovery - Attachment of bank accounts - Petitioner sought interim relief given COVID-19 on pandemic situation in country -

Case of petitioners was that while appeals and stay petitions were pending considerations, income tax authorities issued notices for recovery and attached bank accounts of petitioners. Petitioners referred judgment of Supreme Court and prayed that, given on present COVID-19 pandemic in country, Supreme Court directed that no recovery measures to be taken by revenue authorities including Income Tax authorities. Petitioners pleaded that unless they were allowed to operate bank accounts against which revenue authorities were proceeding, livelihood of petitioners guaranteed under Article 19(1)(g) of the Constitution of India would stand infringed. Held: Petitioners suffered an order of assessment in the year 2019. They preferred an appeal against such order of assessment. There was a stay petition pending also. Revenue authorities issued recovery notice on March 5, 2020 and received recovery amount from concerned banks. All these measures took place prior to order dt. March 20, 2020 passed by Supreme Court. Therefore, as an interim measure given COVID-19 pandemic situation in country, interest of justice would be served by directing banks of petitioners to set apart demanded amount in a separate interest bearing fixed deposit account pending decision of appellate authority and upon bank of petitioners setting aside amount demanded in recovery notice. Petitioners were at liberty to operate such bank account. Further, petitioners in respect of whom revenue authorities had already received recovery amount from concerned banks, order of attachment on bank account of such petitioners were to be lifted.

REFERRED :

FAVOUR : Partly in assessee's favour

A.Y. :

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