M/S Gateway Global Buildwell ... vs Income Tax Officer, Ward-10(1), ...
2020 Latest Caselaw 2626 Del

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*       IN THE HIGH COURT OF DELHI AT NEW DELHI

+       W.P. (C) 6111/2020

        M/S GATEWAY GLOBAL
        BUILDWELL PRIVATE LIMITED                ...... Petitioner
                     Through: Mr. Bhupinder Jit Kumar, Advocate.


                           versus

        INCOME TAX OFFICER, WARD-10(1), DELHI ...... Respondent
                     Through: Mr. Kunal Sharma, Senior Standing
                              Counsel and Ms. Zehra Khan, Junior
                              Standing Counsel.


%                                   Date of Decision: 14th September, 2020



CORAM:
HON'BLE MR. JUSTICE MANMOHAN
HON'BLE MR. JUSTICE SANJEEV NARULA

                               JUDGMENT

MANMOHAN, J: (Oral)

1. The petition has been heard by way of video conferencing.

2. Petitioner challenges the legality and validity of the notice dated 12 th

February, 2020 issued by respondent under Section 226 (3) of the Income

Tax Act, 1961 (hereinafter referred to as 'Act, 1961') primarily on the

ground that the respondent without considering petitioner's application for

stay and demand has proceeded to attach the bank account of the petitioner.

3. Learned counsel for the petitioner submits that this effectively

amounts to rejection of stay application without any plausible reason and

without the benefit of any written order.

4. Learned counsel for the petitioner emphasises that the demand raised

is high-pitched demand inasmuch as the income assessed by the respondent

is 478 times more than the income declared by the petitioner in its return of

income. He states that the attachment of the bank account has resulted in

irreparable hardship to the petitioner especially during the COVID-19

pandemic due to which all businesses are severely impacted.

5. He points out that the bank account attached by the respondent is the

Project Bank account under the Real Estate (Regulation and Development)

Act, 2016 which mandates that the outgo from such bank account shall be

strictly for the purposes of project expenses only.

6. Issue notice. Mr. Kunal Sharma, learned senior standing counsel,

accepts notice on behalf of the respondent.

7. Keeping in view the fact that the petitioner's application for stay

dated 07th February, 2020 has not been disposed of by the Assessing Officer

till date, this Court directs the Assessing Officer to decide the petitioner's

application for stay by way of a reasoned order within two weeks after

hearing the petitioner or its authorised representative on 18th September,

2020 at 11:00 a.m.

8. In the event the petitioner's application is dismissed or rejected, the

parties shall maintain status quo with respect to the attached bank account

for two weeks thereafter so that the petitioner can file appropriate

proceedings in accordance with law if it so desires.

9. With the aforesaid directions, the present writ petition stands disposed

of.

10. The order be uploaded on the website forthwith. Copy of the order be

also forwarded to the learned counsel through e-mail.

MANMOHAN, J

SANJEEV NARULA, J SEPTEMBER 14, 2020 sb