Case Note & Summary
The petitioner, an income tax assessee, filed writ petitions under Articles 226 and 227 of the Constitution of India challenging the bank attachment notice dated 18.02.2019 and the stay rejection letter dated 13.02.2019 issued by the Income Tax Officer. The petitioner also sought directions to the respondent to furnish the entire order sheet relating to assessment proceedings for the assessment year 2013-14 and to pass a speaking order on the stay application dated 15.01.2019. The grievance was essentially against the non-consideration of the stay application and the issuance of the bank attachment notice without a speaking order. The court observed that the Revenue had not considered the stay application and had issued the bank attachment notice, which was arbitrary. The court directed the respondent to furnish the order sheet copy relating to assessment proceedings for the assessment year 2013-14 within two weeks, and thereafter to pass a speaking order on the stay application within two weeks. The bank attachment notice was quashed, and the petitions were disposed of accordingly.
Headnote
A) Income Tax - Recovery Proceedings - Stay Application - Non-Consideration - The Income Tax Officer issued a bank attachment notice without considering the assessee's stay application, which is arbitrary and violative of principles of natural justice - Held that the Revenue must pass a speaking order on the stay application after furnishing the assessment order sheet (Paras 3-4).
Issue of Consideration
Whether the Income Tax Officer's failure to consider the stay application and issuance of bank attachment notice without passing a speaking order is arbitrary and violative of principles of natural justice.
Final Decision
The court quashed the bank attachment notice dated 18.02.2019 and directed the respondent to furnish the order sheet copy relating to assessment proceedings for the assessment year 2013-14 within two weeks, and thereafter to pass a speaking order on the stay application within two weeks. The petitions were disposed of.
Law Points
- Principles of Natural Justice
- Speaking Order
- Stay Application
- Recovery Proceedings
- Income Tax Act
- 1961
