Madras HC Directs Income Tax Dept. To Lift Attachment Of Pension Account Considering Age, Ailment Of Assessee

The Madras High Court has directed the income tax department to lift the attachment of the pension account of the assessee considering his age and ailment.

The bench of Justice R. Mahadevan and Justice Mohammed Shaffiq passed this order noting that the entire pension amount, with arrears, is lying in the bank account of the appellant or assessee. It is also seen that only a sum of Rs. 1,35,000 lying in that account relates to other amounts.

The Court was essentially dealing writ appeal filed by the appellant/assessee seeking directions to the respondent/department to lift the attachment of an account maintained at the State Bank of India.

Earlier, a single-judge disposed of the writ petition wherein the department was directed to lift the Order of Attachment in so far as the pension of the petitioner was concerned.

However, the Court had put an embargo on the petitioner from withdrawing any other amounts deposited in the attached account. It was made clear that only the pension that is credited by the pension-paying authority shall be allowed to be withdrawn.

It was also directed that the respondent shall send suitable communication to the bank. Meanwhile, the Appellate Commissioner shall dispose of the appeals that have been remanded back to the Appellate Commissioner as expeditiously as possible, preferably within 3 months.

Aggrieved by the aforesaid order passed by the judge, the writ petitioner preferred the writ appeal.

The division bench, considered the age and ailment of the appellant, to note that one of the bank accounts of the appellant relates to the pension accruing account and therefore, as an interim measure, the Court ordered that for the appellant's usage to meet his necessities, the bank account bearing the pension amount shall be released from attachment, and out of the available amount of Rs. 15,48,893.66, a sum of Rs. 5,00,000 will be retained in the account, and the total balance amount be transferred to the other account bearing the pension amount, which is under attachment.

The appellant contended that he may be permitted to operate his pension accounting account to meet his health issues.

The court directed that the appellant is entitled to operate the pension account and make all transactions with the amount lying, excluding a sum of Rs. 1,35,000, which, according to the appellant, pertains to other amounts. The sum of Rs. 1,35,000 alone shall be transferred from the pension account to the other account bearing it, which is under attachment.

Counsel For Petitioner: Bhuvaneswaran

Counsel For Respondent: Prabhu Mukunth Arunkumar

Case Title: G.K.Reddy Versus DCIT

Citation: 2023 LiveLaw (Mad) 327

Case No.: W.A.No.2393 of 2023 and C.M.P.Nos.20131 & 20133 of 2023

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