Attachment Of Pension Account By The IT Dept: Delhi HC Directs IT Dept To Consider The Representation Of The Debtor [Read Order]

The Single Bench of Justice Sanjeev Sachdeva has directed the IT Department to consider the Petitioner's representation and pass an order within one week, in accordance with law.

In the present writ petition, the Petitioner has sought court's direction to the Principal Commissioner of Income Tax to modify the attachment of the bank account of the Petitioner and to permit withdrawal of the amounts deposited as pension in the State Bank of India and HDFC Bank accounts.

Further, the Petitioner also sought quashing of the blanket attachment order dated 11.02.2020, whereby the pension accounts have been attached.

The Petitioner had argued that the pension accounts are exempted from attachment under section 11 of the Pension Act, 1871.

Appearing for the IT Department, Mr Ruchir Bhatia submitted that in view of the judgment of a Division Bench of Punjab & Haryana High Court in Gurcharan Singh vs. Principal Commissioner of Income Tax dues of income tax are sovereign dues and would not fall in any of the categories enumerated in Section 11 of the Pension Act, 1871.

However, Mr Bhatia also submitted that in case a representation is made by the petitioner, in view of the Covid-19 Pandemic, the Department shall consider the same sympathetically in accordance with law.

In light of this submission, the Petitioner informed the court that he'll be making his representation before the IT Department within one week.

While disposing of the petition, the court gave liberty to the Petitioner to approach this court, if need so arises, on disposal of the representation.