HC Orders Authority to Lift Attachment on Bank a/c for Pension Withdrawal | Restriction Remains for Other Withdrawals

Case Details: G.K. Reddy v. DCIT - [2023] 156 taxmann.com 729 (Madras)

Judiciary and Counsel Details

• • C. Saravanan, J.
  • M. Vijayakumar for the Petitioner.
  • Prabhu Mukunth Arun Kumar & B. Ramana Kumar for the Respondent.

Facts of the Case

The assessee filed the instant petition seeking a Writ of Mandamus to lift the Order of Attachment attached to his bank account. The assessee was an octogenarian and senior citizen drawing the pension from the Central Government.

Assessee had suffered adverse Assessment Orders for Assessment Years 2007-2008, 2008-2009, 2010-2011 and 2013-2014. The matter reached before the High Court, wherein the court directed the assessee to pay Rs. 25 lakh in three instalments and the stay application filed before ITAT was allowed.

However, the assessee reemitted only the first instalment and failed to deposit the second and the third instalment. Thus, the bank account of the assessee was attached.

High Court Held

The Madras High Court held that the assessee was a retired employee from the Central Government Ministry of Defence and a pensioner whose pension had been blocked due to order of attachment.

Further, the assessee was receiving not only pension but also amount from GK Granites Limited and G.K.Transport. There were huge amounts of deposits lying in the assessee’s account. Thus, lifting the entire Order of Attachment would not be appropriate.

Accordingly, the Assessing Officer (AO) was directed to lift the Order of Attachment in so far as the pension of the assessee is concerned. However, there shall be an embargo on the assessee to withdraw any other amounts deposited in the attached account. Only the pension credited by the pension paying authority shall be allowed to be withdrawn.