2023 (9) TMI 1345 - HC - Income Tax

Recovery proceedings - Assessment order has not yet been taken up for hearing though three years have passed - garnishee notices have been issued by respondent No.2 to the banker of the petitioner. HELD THAT - As appeal filed by the petitioner is required to be heard expeditiously. In this connection, we may refer to Sub-Section (6A) of Section 250 of the Act which says that in every appeal, the Commissioner (Appeals), where it is possible, may hear and decide such appeal within a period of one year from the end of the financial year in which such appeal is filed before him under Sub-Section (1) of Section 246A of the Act. Though the aforesaid provision pertains to appeal filed under Section 246A of the Act, nonetheless the objective behind the aforesaid provision is to hear appeal as early as possible. That being the position, we direct respondent No.1 to take on board the appeal filed by the petitioner on 23.02.2020 against the assessment order dated 14.11.2019 for the assessment year 2017-18 and dispose of the same within a period of three (03) months from the date of receipt of a copy of this order.

Summary

Issues involved: Delay in hearing appeal, Garnishee notices issued to petitioner's banker

Delay in hearing appeal:
The petitioner, an assessee under the Income Tax Act, filed an appeal against the assessment order for the year 2017-18. The assessment order was passed on 14.11.2019, assessing the petitioner's total income at Rs. 69,22,910.00 and initiating penalty proceedings under Section 271AAC of the Act. Despite filing the appeal on 23.02.2020, it had not been taken up for hearing. Meanwhile, garnishee notices were issued to the petitioner's banker by the 2nd respondent. The petitioner's grievance was that the appeal had not been heard for over three years.

Garnishee notices issued to petitioner's banker:
The 2nd respondent issued a notice under Section 226(3) of the Act to the Branch Manager of State Bank of India, Bodhan Branch, on 21.01.2020, for the attachment of the petitioner's bank account. This action was taken while the appeal filed by the petitioner was pending and had not been heard.

Judgment Details:
The High Court, after hearing both parties, emphasized the need for expeditious hearing of the petitioner's appeal. Referring to Sub-Section (6A) of Section 250 of the Act, which mandates hearing and deciding appeals within a year, the Court directed the 1st respondent to hear and dispose of the petitioner's appeal against the assessment order dated 14.11.2019 within three months from the date of the Court's order. The Court disposed of the Writ Petition without any order as to costs, and any pending miscellaneous applications in the Writ Petition were to be closed.