Bank account attached during pendency of appeal: Madras HC directs disposal within two months [Read Order]

Sign In Sign Up Top Stories The High Court of Madras directed the appellate authority to dispose of the petitioner’s appeal within two months, after noting that the petitioner’s bank account had been attached despite the pendency of both an appeal and a stay petition. CRC Limited Employees Gratuity Fund,petitioner-assessee,filed a Nil return for AY 2022–23 on 20.10.

2022, which was accepted under Section 143(1) on 16.01.2023.



Later, an intimation for faceless assessment under Section 144B was uploaded on 01.06.2023, and the assessment was completed under Section 144 read with Section 144B on 14.

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.. Click Here The assessee challenged the assessment by filing an appeal under Section 246A, which is still pending.

A stay petition was also filed in May 2024. However, during its pendency, the second respondent initiated recovery proceedings on 28.08.

2024 and passed an attachment order on 31.12.2024 under Section 226(3), attaching the petitioner’s Canara Bank account without considering the pending appeal or submissions.

In response, the Standing Counsel stated that the third respondent would decide the petitioner’s appeal on merits and pass appropriate orders within the time frame set by the Court. Read More: GST Assessment Order Passed Beyond Statutory Three-Year Limit: Allahabad HC Quashes Order Know Practical Aspects of Tax Planning, Click Here Justice Vivek Kumar Singh having considered the above submissions, directed the third respondent to review the petitioner’s appeal dated 08.04.

2024 on its merits and issue appropriate orders in accordance with the law, after providing the petitioner with a fair opportunity, within two months from receiving a copy of the order. The court also made it clear that it had not expressed any opinion on the merits of the case and that the third respondent was free to assess it independently. In short,the petition was disposed of.

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