Mr. Atul Sharma vs. The Assistant Commissioner of Income Tax

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WP/17225/2025HC TelanganaHBHC01034128202523 June 2025Bench: P.SAM KOSHY,NARSING RAO NANDIKONDA6 pages
AI SummaryRemanded

What did the High Court hold?

The High Court of Telangana disposed of the writ petition in light of an order passed by the same Bench on June 10, 2025, in W.P. No. 17123 of 2025. The present writ petition was disposed of in terms of the order passed in W.P. No. 17123 of 2025, with no orders as to costs. Consequently, any pending miscellaneous petitions were also closed. The specific reasoning or findings on the merits of the issues raised in the writ petition, including the legality of the stay application rejection and the garnishee notice, are not detailed in this order as it refers to a separate, prior order for its disposition. Therefore, the operative directions were to dispose of the writ petition as per the aforementioned order.

What were the facts?

The petitioner, Mr. Atul Sharma, filed a writ petition before the High Court of Telangana challenging an order dated December 2, 2024, by the Assistant Commissioner of Income Tax (1st Respondent) rejecting his stay application pending appeal before the Commissioner of Income Tax (Appeals) for Assessment Year 2019-20. He also challenged a garnishee notice dated April 29, 2025, issued by the 1st Respondent under Section 226(3) of the Income Tax Act, 1961, attaching his bank account held with HDFC Bank Limited (6th Respondent). The petitioner sought to declare these actions arbitrary, illegal, and violative of constitutional and statutory provisions, and sought a stay of recovery pending the disposal of his appeal and the writ petition.

What were the issues?

1. Whether the order dated December 2, 2024, rejecting the petitioner's stay application, and the garnishee notice dated April 29, 2025, attaching his bank account, are arbitrary, illegal, bad in law, void-ab-initio, violative of principles of natural justice, and Articles 14, 19(1)(g), and 265 of the Constitution of India, and Section 148A of the Income Tax Act, 1961. Assessee's contentions: The petitioner argued that the rejection of the stay application and the issuance of the garnishee notice were arbitrary and illegal. He sought to set aside these actions and obtain a stay on recovery pending his appeal before the appellate authority and the disposal of the writ petition. Revenue's contentions: The judgment does not record specific arguments made by the revenue (Respondents 1 to 5).

Which sections of the Income-tax Act were involved?

Section 226(3),Section 148A

AI-generated summary — verify with the full judgment below

13447l HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original J urisdiction) IMONDAY, THE TWENTY THIRD DAY OF JUNE TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE NARSING RAO NANDIKONDA WRIT PETITION NO: 17225 OF 2025 Between: lVlr. Atul Sharma, S/o IVr. Ramchandra Sharma, aged 52 years, Occ. Private Emptoyee, R/o A- 401, Nilambhar Balissimo, Vasna Road, Vadodara - 390007, Gujarat, Former resident of. Flat No. . 505, Pegasus Wing, fi,4eenakshis Sky Lounge' Khanamet, Hyderabad - 500084, Telangana. .....PETITIONER AND 1 - The Assistant Commissioner of lncome Tax, Circle 12(1 ), Hyderabad Aayakar Bhavan, opposite to LB Stadium, Basheerbagh, Hyderabad - 500 004, Telangana. 2. Assessment Unit, lncome Tax Department, National e- Assessment Center, New Delhi, Room No. . 401,2nd Floor, E- Ramp, Jawaharlal Nehru Stadium, New Delhi - 1 10 003. 3. The Principal Commissioner of lncome Tax - 1, Hyderabad l. T. Towers, AC Guards, It/lasab Tank, Hyderabad - 500 004, Telangana- 4. The Joint Commissioner (Appeals) / the Commissioner of lncome Tax (Appeals), National Faceless Appeal Centre, Delhi, Through the Principal Chief Commissioner of lncome Tax (NaFAC), Delhi, North Block, New Delhi - 110 001. 5. The Central Board of Direct Taxes, Represented by its Chairman, Department of Revenue, IMinistry of Finance, Government of lndia, Secretariat Buildings, New Delhi - 110 001 . 6. Ir//s HDFC Bank Limited, HDFC Bank House, Senapati BAP at [\,4arg, Lower Parel, Mumbai. .....RESPONDENTS i 1 I i I I ! I I

t : r. ,Lr'1.:t--i-q'7 Petition Under Article 226 of the Constitution of I r: ra praying that in the circumstances stated in the affidavit filed therewith, tl :: High Court may be pleased to issue a \tVrit of l/andamus or any on this apr,']priate Writ, Order or Direction, declaring. a. the order passed by the 1st Re:,:,tndent, vide DIN and Letter No. . ITBA/COM/F11712024- 2511070793291(1), jirted 02. 12. 2024, in rejecting the stay applicatron filed by the Petitioner, p rnding disposal of the appeal of the Petitioner before the 1st Appellate Aur- rrity, i. e- the 4th Respondent herein, for the Assessment Year 2019 - 2l and b. the garnishee notice issued by ther 1st Respondent, dated 29. 04. 202 i. vide DIN and Notic! No. . ITBA/ROV131226(3) _112025-2611075872286(1), ur, 226(3\ of the Income Tax Act, 1961 , attaceing the bank account of the Petition, . held with Respondent No. . 6, i. e. , the bi:nker of the Petitioner. as arbitrary, :.gal, bad in law, void- ab- initio, violative o1'the principles of natural justice, apa rom being violative of Articles 14, 19(1Xg) and 265 of the Constrtution of lndi and Sec 148A of the lncome Tax Act, 1961, and consequently set- aside the ,. nre and grant stay of recovery, pending ciisposal of the Petitioners appeal b l,;re the 'lst Appellate Authority, in the interests of justrce. l.A.NO:1 OF 2025 Petition Under Section 151 CPC praying that in the the affidavit filed in support of the petition, the High Court all further proceedings, including any recovery, pursuanl No. . ITBA/COMIFl17l2O24- 2511070793291 (1) dated 01 the stay application filed by the Petitioner, pending dispc Petitioner before the 1st Appellate Authority, i. e. , the 4tl- the Assessment Year 2019 - 20, pending disposal of t pending disposal of the above writ petition. rircumstances stated in --ay be pleased to stay tr> vide DIN and Letter 12. 2024. in rejecting r: I of the appeal of the l:lespondent herein, for ,, above Writ Petition, |.A.NO:2 OF 2025 Petition Under Section 151 CPC praying that in the rircumstances stated in the affidavit filed in support of the petition, the High C('u 1 may be pleased to suspend the garnishee notices issued by the 1st Respond,r.rt. dated 29. 04. 2025, vide DIN and Notice No. . ITBA/RCVIS1226(3)_112025- ?.6t1O15872286(1), uls

226(3) of the lncome Tax Act, 1961, attaching the bank account of the Petitioner held with Respondent No. . 6, i. e. , the banker of the Petitioner. Counsel for the Petitioner : SRI A.V.A.SIVA KARTIKEYA Counsel for the Respondent Nos.'l to 5 : Ms. BOKARO SAPNA REDDY Counsel for the Respondent No.6 : - The Court made the following ORDER

w THE IIONOURABLE SRI JUSTICE P.SAI,I KOSHY AND THE HONOURABLE SRI JUSTICE NARS 1I{G RAO NANDIKONDA W.P.No.17225 oF 202s ORDBR, (per tl,cn'bte Sri Justice p.Sant Koshy) I{card Mr. A.V.A.Siva Kartikcya, learned c, Lr rsel fbr. thc pet-itiorer and Ms. B.Sapna Rcddy, learned Senior Sti rrling Counsel lor the Incorne -fax Departrnent lor respr,t,lc11 Nos.l to -5. Perused thc reqord. 2. ln thc light of the order passed by this Bench o, 10.06.2025 in 'r\,'.P.No.l7l23 ol 2025, being disposcd of vide sepi li tc or.der, the present rvrit pelition is also disposed of in ternts of the ;rder passed in W.P.No. 17123 ol2025. There shall be no ordcras to co i. Consequcntly, rnisccllaneous petitions pending, Ll. any, shall stand closed. The Assistant Commissioner of lncome Tax, Ci Bhavan, opposite to LB Stadium, Basheerbagh /.\ ir i\\l 1 rc\e flZ I ,FMer SD/.V.KAVITHA I:PUTY REGISTRAR //TRUE COPY// To SECTION OFFICER ), Hyderabad Aayakar lrad - 500 004, 1 Telangana. Z. ff-re niiessment Unit, lncome Tax Department, N4io al e- Assessment - Ceniei, New Delhi, Room No. . 401,2nd Floor, E- Rar rFr, Jawaharlal Nehru Stadium, New Delhi - 110 003. s. ihu Cii"tipii C:ommissioner of lncome Tax - 1, Hydet rr'ad l T Towers' AC Guards, Irlasab Tank, Hyderabad - 500 004' Telangat a +. iri" Loiht Commissionei (Appeals) / the Commission( ')f lncome Tax (Aooeals). National racel'eds App6al centre Delhi' Tl r('ugh the Princip-al bii;i-'n,,.[.tioner of lncome tax (NaFAC), Delhi l :'th Block New Delhi - 110001 . S. i66 bentr.l Board of Direct Taxes, Represented by it (lhairman, Department " ;i R"*"r;, Vinistry of Finance, Goveinment of lndia S jecretariat Buildings, New Delhi - 1 '10 001 . o vrTs n-oic Bank Limited, HDFC Bank House, senap. i BAP at [r4arg, Lower Parel, lt/lumbai. ,-,/----.

. :t+ ' a'r$ tYr . *r' - ,// :.4 / 7. One CC to SRI A.V.A.SIVA KARTIKEYA, Advocate [OPUC] B. d; cc to [vls. BoKARo SAPNA REDDY, Advocate [oPUc] 9. Two CD CoPies SA GJP o

\ HIGH COURT DATED:2310612025 ORDER WP.No.17225 ot 2025 DISPOSING OF THE W.P WITHOUT COSTS. t ( -..a ' 1- .- \...+ \: ):,r--\-..,',- 1r l[,T 2U5 a1 .i >,| ''ll.

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