Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2021 (5) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (5) TMI 361 - HC - Income TaxStay of Recovery proceedings - Other modes of recovery - Prayer quashing 226(3) notice - assessment passed u/s 144 bringing to tax the entirety of the bank balance as unexplained investment and income along with applicable penalty - HELD THAT:- On the basis of the information received from the Kumbakonam Central Co-operative Bank, the details of the bank accounts and deposits made during demonetization were obtained and reply was sought for from the assessee in regard to certain deposits made during the relevant financial year. Admittedly, the petitioner did not respond to notice issued under Section 142(1). A pre-assessment show cause notice was also issued on 27.08.2019, to which also there was no response - thus order of assessment has come to be passed under Section 144 records total non-co-operation on the part of the petitioner during the assessment proceedings. The petitioner has admittedly challenged the same by way of first appeal, which is pending disposal. No application for stay has been placed before this Court though the affidavit filed in support of the Writ Petition mentions the stay application filed before the Income Tax Officer. In such circumstances, I see no illegality in the coercive recovery proceedings that have been initiated, save, of course, that the Section 226 notice ought to have been issued on the petitioner simultaneous with service upon the bank manager. This has admittedly not been done. However, this is not fatal to the proceedings, seeing as the petitioner is aware of the coercive recovery proceedings initiated as early as in March, 2020, but has chosen to do nothing till date. The prayer sought for by the petitioner, for a certiorarified mandamus quashing 226(3) notice, is thus not liable to be granted. Had an application for stay been filed, one could have considered the disposal of that application pending appeal. However, that has also not been done. Thus, the petitioner, at this juncture, can only be permitted to seek appropriate interim protection from the appellate/administrative authorities, pending appeal.
|