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2014 (4) TMI 352 - HC - Income TaxProceeds of the bank account attached Stay already granted Held that - The assessee s application for stay was granted and the interim order was made for the period of 180 days the contention of the revenue that the concerned AO was not intimated, cannot be accepted - it clearly amounts to overreach of the interim order of the Tribunal the revenue should lift the attachment and ensure that the amounts recovered are deposited back in the petitioner s account Decided in favour of Assessee.
Issues:
1. Grant of stay by ITAT and subsequent attachment of bank account proceeds by revenue authorities. Analysis: The case involved the petitioner losing an appeal before the Commissioner of Income Tax (Appeal) and the revenue issuing a notice under Section 221 for determined demand amounts due for the assessment year 2007-08. The petitioner then filed an appeal and stay application to the ITAT, which was taken up on 14.02.2014. The ITAT granted a stay subject to certain conditions, including the payment of 50% of the remaining demand. Despite the stay granted by the ITAT, the revenue authorities attached and took away the proceeds of the petitioner's bank account on 19.02.2014. The revenue contended that there was no intimation about the stay and that the concerned assessing officer was not present when the stay was granted. However, the High Court noted that the income tax authorities were represented before the Tribunal when the stay order was pronounced in open court on 14.02.2014. The High Court held that the revenue's argument about lack of intimation was not acceptable and amounted to an overreach of the Tribunal's interim order. The Court directed the revenue to lift the attachment and ensure that the recovered amounts are deposited back in the petitioner's account within a week from the date of the judgment. In conclusion, the High Court allowed the writ petition and directed the revenue to comply with the above directions. The Court emphasized the importance of respecting the orders of the Tribunal and ensuring that due process is followed in such matters. A copy of the order was to be marked to the Central Board of Direct Taxes for communication.
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