2019 (10) TMI 85 - HC - Income Tax

Default u/s 226(3) - attaching the petitioner's bank account and investment made in mutual funds - default and violation on the part of the petitioner of the interim order dated 11.03.2019 passed in the proceedings pending before the authorities - HELD THAT - The fact that the petitioner is willing to deposit the arrears as well as undertakes to deposit the amount in future as well, the petition filed by the petitioner is disposed of with a direction to the effect that in case the petitioner approaches the authority concerned by filing such an application alongwith a copy of the petition and a copy of the order passed today, the authority concerned shall take the same into consideration and thereafter, in case the petitioner complies with the undertaking and statement made by him, consider restoring the interim order passed by the authorities on 11.03.2019. The petitioner may also approach the authorities for early disposal of the appeal as per the internal circulars of the department.

Summary

Issues:
Petitioner aggrieved by notice under Income Tax Act attaching bank account and mutual fund investment due to default in interim order compliance.

Analysis:
The petition was filed by the petitioner challenging a notice dated 09.08.2019 issued under Section 226(3) of the Income Tax Act. The notice attached the petitioner's bank account and mutual fund investment due to default and violation of an interim order dated 11.03.2019. The petitioner, through their Senior Counsel, stated that they had deposited a certain amount for specific months but failed to deposit for March, April, and May due to financial constraints. The respondent authorities issued a notice on 06.08.2019, received by the petitioner on 09.08.2019, after the fixed hearing date of 08.08.2019. The authorities proceeded to attach the petitioner's assets without waiting for a response. The Senior Counsel assured that the petitioner was willing to clear the arrears and continue future payments as per the interim order.

The High Court considered the submissions of the Senior Counsel and the petitioner's willingness to comply with the interim order. The court disposed of the petition with a direction that if the petitioner files an application with a copy of the petition and the court's order, the authorities should consider restoring the interim order upon compliance with the undertaking. The petitioner was also advised to seek early disposal of the appeal through the department's internal circulars. The court concluded by stating that the petition stands disposed of, subject to compliance with the provided directions and observations.