K. Rethinam Vs Tax Recovery Officer (Madras High Court)
The petitioner filed a writ petition before the Madras High Court challenging the attachment orders dated 08.04.2022 issued by the Tax Recovery Officer and sought a direction for their removal. The petitioner contended that the attachment was no longer valid since the assessment had been concluded, appeals had been decided in their favour, and all tax dues had been cleared.
A search was conducted by the Income Tax Department on 08.12.2016, leading to proceedings under Section 153A of the Income Tax Act, 1961. Subsequently, assessment orders were passed on 06.02.2020 for Assessment Years (AYs) 2012-13 to 2017-18. For AYs 2015-16 to 2017-18, the Assessing Officer made new additions, while the assessments for AYs 2012-13 to 2014-15 recorded nil additions. Following these assessments, attachment orders were issued on 08.04.2022.
The petitioner appealed against the assessment orders before the Commissioner of Income Tax (Appeals) [CIT(A)], who partly allowed the appeal on 15.09.2023 and set aside the additions made by the Assessing Officer. This order was given effect to on 19.10.2023. The Department subsequently filed an appeal before the Income Tax Appellate Tribunal (ITAT), which confirmed the order of the CIT(A) on 30.04.2025. Despite the ITAT’s decision, the attachment orders remained in place.
