Baddi University Of Emerging Sciences ... vs Commissioner Of Income Tax ...
2026 Latest Caselaw 1351 P&H

Punjab-Haryana High Court

Baddi University Of Emerging Sciences ... vs Commissioner Of Income Tax ... on 12 February, 2026

Author: Deepak Sibal

Bench: Deepak Sibal

CWP NO.3121
       3121 OF 2026 (O&M)



      IN THE HIGH COURT OF PUNJAB AND HARYANA AT
                   CHANDIGARH

                                       CWP NO.
                                           NO.3121 OF 2026 (O&M)

Baddi University of Emerging Sciences & Technology
                                                                ...Petitioner
             Versus
Commissioner of Income Tax (Exemptions) Chandigarh
and others                                      ...Respondents

1.    The date when the judgment is reserved                      04.02.2026
2.    The date when the judgment is pronounced                    12.02.2026
3.    The date when the judgment is uploaded                      13.02.2026
4.    Whether only operative part of the judgment is              Full
      pronounced or whether the full judgment is
      pronounced
5.    The delay, if any of the pronouncement of full              Not applicable
      judgment, and reasons thereof


CORAM : HON'BLE MR. JUSTICE DEEPAK SIBAL
        HON'BLE MS. JUSTICE LAPITA BANERJI

Present :    Mr. Sandeep Goyal, Senior Advocate with
             Mr. Rishab Singla, Advocate,
             for the petitioner.

             Ms. Pridhi Jaswinder Sandhu, Senior Standing Counsel
             For respondent-revenue
                 respondent revenue department.


LAPITA BANERJI, J.

Prayer in the present petition filed under Articles 226/227 of

the Constitution of India, inter-alia, is for issuance of a writ in the nature of

certiorari for quashing of a letter dated January 14, 2026 (Annexure P P-16)

issued by respondent No.2-Deputy No.2 Deputy Com Commissioner of Income Tax

(Exemptions), Chandigarh to respondent No.4 No.4-Punjab National Bank

through its Chief Branch Manager for attachment of the bank accounts of

the petitioner, being illegal and in contravention of provisions of the Income

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CWP NO.3121 3121 OF 2026 (O&M)

Tax Act,, 1961 (hereinafter referred to as "the 1961 Act") since the appeals

filed by the petitioner before respondent No.6 No.6-Commissioner (Appeals)

have been pending for more than three years. The petitioner has also prayed

for stay of operation of the letter dated Januar January 14, 2026 during the

pendency of the statutory appeal/the writ petition. Further Further, a prayer has also

been made for expeditious disposal of the stay application filed by the

petitioner on January 19, 2026 and the main appeals dated October 20,

2022, April 29, 9, 2024 and January 19, 2026.

2. The facts of the case in brief are as follows:

i) The petitioner, an income tax assessee assessee, is a Trust imparting

education to the students.

students. The petitioner is registered under Section 12AA

of the 1961 Act. It has further obtained registration under Section

12A(1)(ac)(i) of the Act and has obtained exemptions from time to time

under Section 80G(5).

ii) For the assessment year 2020- 2020-21, the petitioner filed its

Income Tax Return (ITR) by declaring 'NIL' income claiming exemption

under Section 12A of the Act. The said ITR was selected for scrutiny and

notices under Section 143(2) and 142(1) of the 1961 Act w were issued to the

petitioner, calling for information.

iii) The said proceedings culminated into passing of order dat dated

September 23, 2022 (Annexure P-3) under Section 143 (3) read with

Section 144B of the 1961 Act, whereby an addition of Rs.1,34,71,225/ Rs.1,34,71,225/- was

made by disallowing the expenses on account of Amortization,

salary/allowances and certain other expenses under Section13 (3) of the

Act.

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 CWP NO.3121
       3121 OF 2026 (O&M)



iv)          Pursuant thereto,

thereto a demand notice dated Septe September 23, 2022

(Annexure P--4) was issued to the petitioner raising a demand of

Rs.61,32,372/--.

v) Feeling aggrieved by the aforesaid demand notice, the

petitioner filed an appeal before the Commissioner (Appeals) (Appeals)- respondent

No.6 on October 20, 2022 along with an application for stay. Both the

appeal and application for stay are pending adjudication as on date.

vi) For the assessment year 2022-23, 2022 23, the petitioner filed its ITR on

November 07, 2022 declaring its income to be ''NIL'. The said ITR was

subject to scrutiny proceedings. An assessment order dated March 30, 2024

(Annexure P-7)

7) under Section 143 43 (3) read with Section 144B of the 1961

Act was passed whereby an addition of Rs.24,29,49,067/ Rs.24,29,49,067/- was proposed by

disallowing various deductions as claimed by the petitioner.

vii) Pursuant thereto, thereto a demand notice dated March 30, 2024

(Annexure P-8)

8) was issued raising a demand of Rs.12,84,38,418/ Rs.12,84,38,418/-.

viii) Feeling aggrieved and dissatisfied with the impugned demand

notice dated March 30, 2024, the petitioner preferred an appeal before the

Commissioner of Income Tax (Appeals) on April 29, 2024. No stay

application pplication was filed at the time of filing of the appeal. The said appeal is

pending adjudication before respondent No.6.

ix) Under Section 270A of the 1961 Act, an order dated August 29,

2024 imposing penalty of Rs.5,17,89,691/-

Rs.5,17,89,691/ was imposed for the assessment

year 2022-23.

23. An appeal challenging the penalty order was filed before the

Commissioner (Appeals) on January 19, 2026.

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CWP NO.3121 3121 OF 2026 (O&M)

x) The petitioner had filed its written submissions in appeal for

the assessment year 2020-21 21 vide acknowledgment receipt receipts dated February

15, 2023 and January 09, 2025 (Annexure P--10). The written submissions

in appeal for the assessment year 2022 2022-23 was filed through

acknowledgment receipt dated January 21, 2025 (Annexure P-11).

(xi) D During the pendency of the aforesaid appeals, tthe petitioner

received several recovery notices dated November 12, 2024 (Annexure P P-

12), ), February 25, 2025 (Annexure P-13), P 13), July 02, 2025 (Annexure P P-14)

and August 19, 2025 (Annexure P-15) P 15) issued by respondent No.2.

Admittedly, replies were not filed on behalf of the petitioner to the

aforesaid notices.

xii) Vide impugned letter dated January 14, 2026 (Annexure P-16)

issued by respondent No.3-National No.3 National Faceless Assessment Centre (NFAC) to

respondent No.4-Punjab No.4 Punjab National Bank (PNB) (PNB), the bank accounts of the

petitioner maintained with respondent No.4-bank No. bank were attached to recover a

demand of Rs.18,63,57,371/-

Rs.18,63,57,371/ pertaining to the assessment years 2020-21

and 2022-23.

xiii) After the letter of attachment dated dated January 14, 2026 was sent

to the respondent No.4-Bank No.4 immediately the petitioner filed an application

under Section 220(6) of the 1961 Act on January 19, 2026 for stay of

outstanding demands for the assessment years 2020 2020-21 and 2022-23 and for

release of bank accounts.

SUBMISSIONS

3. Mr. Goyal, learned senior advocate appearing on behalf of the

petitioner submits that despite the appeals being pending since long, the

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CWP NO.3121 3121 OF 2026 (O&M)

respondent No.6 failed to adjudicate the same. Illegally and arbitrarily the

recovery notices dated November 12, 2024,, F February 25, 2025, July 02,

2025 and August 19, 2025 had been issued by the authorities which could

not be responded to by the petitioner-trust petitioner trust as the Accountan Accountant who used to

oversee its tax related issues had left his job. All the recovery notices were

sent to the e-mail mail id of the accountant who did not transmit the same to the

petitioner. Due to illegal and arbitrary attachment of petitioner's bank

accounts,, the petitioner is unable to meet the daily expenses of running the

institute. The fixed monthly expenditure of Rs.1,38,46,316/ Rs.1,38,46,316/- which includes

salary, statutory liabilities and expenses of mess etc., cannot be paid by the

petitioner unless it can operate its bank accounts accounts.

4. Mr. Goyal further submits that the resp respondents should have

decided petitioner's appeal expeditiously, first of which is pending since

2022. At least, application for stay of the recovery notices should have been

decided expeditiously and the bank accounts of the peti petitioner should have

been de-attached ttached.

5. Ms. Sandhu, learned Standing counsel for the revenue appears Ms.

on advance notice to assist the Court and submits that the attachment was

done in accordance ordance with law as replies were not filed by the petitioner

despite espite several recovery notices/reminders being sent to it. Moreover, no

application for stay was filed along with the appeal preferred on April 29,

2024. It is only when the accounts of the petitioner petitioner-trust were attached by

the revenue authorities, authorities the he petitioner filed application for stay on January

19, 2026 and prayed for expeditious disposal of its appeals. The intention of

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CWP NO.3121 3121 OF 2026 (O&M)

the petitioner was not bona fide in nature and rather indicated the contrary

thereto. Therefore, the present writ petition sho should not be entertained.

DISCUSSION AND FINDINGS

6. This Court has heard learned counsel for the parties and

perused the material on record.

7. It appears that first appeal for the assessment year 2020-21

filed by the petitioner has been pending since October 20, 2022 and the

second appeal for the assessment year 2022 2022-23 has been pending since

April 29, 2024 and the third appeal challenging imposition of penalty under

Section 270A of the 1961 Act for the assessment year 2022 2022-23 has been

pending since January 19, 2026, along with an application of stay which has

been filed on January 19, 2026 for stay of recovery notices notices. Even though

there may be no procedural infirmity in passing of recovery notices dated

November 12, 2024, February 25, 2025, July 02, 2025, August 19, 2025

and penalty order dated August 29, 2024, still the Court cannot lo lose sight of

the fact that the petitioner-trust petitioner is an educational institute that is imparting

education ducation to several students which is a beneficial cause for the society. The

expenses of the institute are required to be met for its day to day running for

the benefit of the students.

students Unless nless the petitioner is able to access its bank

accounts the institution would stop running causing severe detriment to the

interest of the students.

students It is also true that a considerable time has elapsed

since filing of the first two appeals by the petitioner before respondent

No.6-Commissioner Commissioner (Appeals) and the same are still pending adjudication.

8. Therefore, this this Court directs the Commissioner (Appeals) (Appeals)-

respondent No.6 to decide all the three pending appeals of the petitioner

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CWP NO.3121 3121 OF 2026 (O&M)

filed vide acknowledgments dated October 20, 2022, April 29, 2024 and

January 19, 2026 or atleast the application dated Janua January 19, 2026 for stay

of recovery notices, notice within a period of one month from the date of receipt of

certified copy of this order.

9. In the meantime, meantime, to balance the equities between the parties,

this Court directs that upon furnishing of bank guarantee/s to the tune of

Rs.1 crore in favour of the competent authority, the petitioner petitioner-trust will be

allowed to withdraw a sum upto Rs.1 crore only, for meeting its daily

expenses.

10. With the aforesaid directions, CWP No. With No.3121 of 2026 is

disposed of.

11. Connected application(s), if any, shall also stand disposed of

accordingly.

(DEEPAK SIBAL)                                   (LAPITA BANERJI)
    JUDGE                                             JUDGE


FEBRUARY 12, 2026
Shalini


Whether speaking/reasoned:                       Yes/No
Whether reportable:                              Yes/No





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