R. PRABHAKAR REDDY vs THE TAX RECOVERY OFFICER (CENTRAL)

1/5 IN THE HIGH COURT OF KARNATAKA AT BENGALURU

Dated this the 6th day of December, 2016

Before

THE HON’BLE DR. JUSTICE VINEET KOTHARI

WRIT PETITION No.61756/2016 (T-IT) Between:

R. Prabhakar Reddy, Son of N. Rama Reddy, 44 years, Residing at 526, II and III Floor, 8th Block, 80 feet Road, Koramangala, Bengaluru – 560 095.

.. Petitioner

(By Mr. Ashok Haranahalli, Senior counsel For Mr. Sanjay Gowda, N.S., Advocate)

And:

The Tax Recovery Officer (Central), 3rd Floor, Central Revenue Buildings, Queens Road, Bengaluru – 560 001.

The Income Tax Department By its Commissioner 324, Central Revenue Buildings Bengaluru – 560 001.

... Respondents

*** This Writ Petition is filed under Articles 226 and 227 of the Constitution of India, praying to quash the proclamation of sale dated 20/10/2016 issued by the first respondent, Annexure B and

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restrain the Respondents from auctioning the House property of the petitioner mentioned in Annexure B, etc.

This Writ Petition coming on for Preliminary Hearing this day, the Court made the following:

O R D E R

Mr. Ashok Haranahalli, Sr. Counsel for Mr. Sanjay Gowda N.S., Advocate for petitioner;

The learned counsel for the petitioner submits that the impugned demand of Income Tax with interest and penalty raised against the petitioner – assessee for the Assessment Year 2012-13 is not being challenged nor any proceedings challenging the said demand are pending before any other Appellate Authority or Court. However, since a proclamation of sale of the residential house of the present petitioner has been issued by the Respondent – Tax Recovery Officer (TRO) under Sections 222 and 223 of the Income Tax Act, 1961, seeking to recover a sum of Rs.1,46,58,192/- vide Proclamation of Sale, Annexure B dated 20/10/2016 and the sale has to take place tomorrow itself, i.e. 07/12/2016, the petitioner –assessee is ready and willing to deposit 50% of the said demand within a period of two weeks from today and

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remaining 50% within six weeks from today and this indulgence may be granted by this Court under Article 226 of the Constitution of India and the sale of the residential house of the petitioner may be stayed. 2. In view of the statements made by Mr. Ashok Haranahalli, Senior counsel appearing for Mr. Sanjay Gowda N.S., the learned counsel appearing for the petitioner- assessee, though this Court is of the opinion that the demand in question not being under challenge and the petitioner – assessee ought to have paid the said demand in due course of time itself, however, looking to the fact that the residential house of the petitioner is intended to be sold by the Income Tax Department for recovery of the said dues and the market value of the said residential house is stated to be much more than the demand in question, it is directed by disposing of the present writ petition itself that if the petitioner – assessee deposits 50% of the disputed demand, i.e. Rs.1,46,58,192/-, i.e. Rs.75.00 lakhs within a period of two weeks from today and the remaining entire amount within six weeks from

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today, then the auction of the residential house of the petitioner, situated at No.1749, 25th cross, off 19th Main Road, 20th Main, Sector II, Hosur Sarjapur Road Layout (HSR Layout), Bangalore-560102 may not be undertaken and finalized. 3. It is made clear that:- i] No extension of time shall be permitted to the petitioner –assessee of the aforesaid period given to him; ii] If the petitioner - assessee fails to deposit the aforesaid entire amount of Rs.1,46,58,192/- within the stipulated time- frame given above, the writ petition shall be treated as dismissed and the Respondent - authorities will be free to recover the aforesaid amount of Rs.1,46,58,192/- with further interest from the petitioner – assessee, in accordance with law; iii] If the entire amount is paid as aforesaid, the concerned Respondent – Tax Recovery Officer

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Assessing Authority shall make appropriate orders on the representation of the petitioner, releasing the said residential property from attachment, in accordance with law.

With these observations, the writ petition stands disposed of. No costs.

A copy of this order be sent to Respondents, forthwith.

Sd/-

JUDGE

BMV*

R. PRABHAKAR REDDY vs. THE TAX RECOVERY OFFICER (CENTRAL)