| Question And Answer | |
|---|---|
| Subject: | whether the Assessing Officer continue with bank attachment , even after the assessee paying 20% of tax in dispute ? |
| Category: | Income-Tax |
| Querist: | Saboo |
| Answered by: | Advocate Aditya Ajgonkar |
| Tags: | attachment of Bank Account, Recovery of tax |
| Date: | May 11, 2021 |
The assessee has filed first appeal which is pending for final disposal , meantime the department has attached the bank account . The assessee has paid now 20% of tax in dispute . Whether the revenue will lift the attachment of bank account . If the revenue does not lift the bank attachment , what is the remedy available to the assessee?
The payment of 20% of the tax in dispute by itself would not entitle the Assessee to ask the Income-tax Department to lift the attachment of the bank Account. The Assessee would be entitled to such a relief only if, along with the Appeal, an application is made for the stay of demand. If such stay is granted by the Commissioner and the 20% of the tax in dispute is paid in lieu of the condition of the stay of such demand, then the Assessee (now the Appellant) may make a request to the Commissioner to lift such attachment of the Bank Account. If the attachment is not lifted even upon making such a request, the Appellant may file a Writ Petition before the Jurisdictional High Court for the same. Based upon the factual matrix of the matter, the High Court may direct the Revenue authorities to lift such an attachment. A reference can be made to the latest cases of Dhanalakshami Srinivasan Chit Funds P. Ltd. v. PCIT [2020] 274 Taxman 45 (Madras)(HC) and Monarch v. ITO [2020] 273 Taxman 73 (Karnataka) (HC) amongst others where the High Courts have stepped in and given relief to the Petitioners in the cases where attachment was made and stay was granted by the revenue authorities.