2020 (5) TMI 192 - HC - Income Tax

Recovery proceedings - attachment of pension accounts - petitioner seeks withdrawal of the amounts deposited as pension in the State Bank of India and HDFC Bank accounts and further seeks quashing of blanket attachment order dated 11.02.2020, whereby the pension accounts have been attached - HELD THAT - As petitioner submits that two representations have already been give. However, a detailed representation shall be filed with the Income Tax Department within one week. On petitioner filing a representation, the competent authority shall consider the same and dispose it off, in accordance with law, by passing a speaking order, preferably, within a period of one week. List before the concerned Roster Bench for directions on 15.07.2020.

Summary

Issues:
1. Direction sought to modify attachment of petitioner's bank account for pension withdrawal.
2. Quashing of blanket attachment order dated 11.02.2020 on pension accounts.
3. Exemption of pension attachment under Section 11 of the Pension Act, 1871.
4. Sovereign nature of income tax dues in relation to pension attachment.

Analysis:
The petitioner filed a plea seeking directions to modify the attachment of their bank account to allow withdrawal of pension amounts deposited in State Bank of India and HDFC Bank accounts. The petitioner also requested the quashing of a blanket attachment order issued on 11.02.2020. The petitioner's counsel argued that the attachment of pension amounts is exempt under Section 11 of the Pension Act, 1871. On the other hand, the respondent's counsel, representing the Income Tax Department, cited a judgment from a Division Bench of Punjab & Haryana High Court asserting that income tax dues are sovereign dues and do not fall under the exemptions listed in Section 11 of the Pension Act, 1871.

The court issued notices to the respondents, who accepted the same through their respective counsels. The court directed the filing of a counter affidavit within four weeks and allowed a rejoinder to be filed within four weeks thereafter. Respondent No. 1's counsel mentioned that representations made by the petitioner regarding the Covid-19 Pandemic would be considered sympathetically by the Department upon submission. The petitioner was instructed to file a detailed representation with the Income Tax Department within one week for further consideration.

Upon submission of the representation, the competent authority was directed to review and dispose of it by passing a speaking order within one week in accordance with the law. The case was listed before the concerned Roster Bench for directions on 15.07.2020, and the petitioner was granted liberty to approach the court if necessary after the representation's disposal. The court ordered the uploaded copy of the judgment on the High Court website and its forwarding to the parties and counsels via email for their information.