Adarsh Samaj Kalyan Samitee And Anr Vs Union of India And 4 Ors (Gauhati High Court)
The Gauhati High Court disposed of a writ petition filed against freezing of bank accounts arising from income tax demands for Assessment Years 2021–2022 and 2022–2023. The petitioners challenged the continued freezing of their bank accounts despite the Income Tax Appellate Tribunal (ITAT), Guwahati Bench, having remanded the matter to the First Appellate Authority for fresh consideration.
The assessment orders dated 14.03.2024 and 16.03.2024 had raised income tax demands of ₹1.45 crore and ₹3.07 crore respectively. Appeals filed before the First Appellate Authority were dismissed on 25.08.2025, after which second appeals were preferred before the ITAT under Section 253 of the Income Tax Act, 1961. During pendency of the appeals, the petitioners’ bank accounts were frozen. Subsequently, the ITAT, through orders dated 22.01.2026 and 02.02.2026, allowed the appeals and remanded the matters for fresh adjudication.
The petitioners contended that despite the remand orders, the bank accounts remained frozen, causing serious disruption to their business operations. The Revenue referred to an earlier Gauhati High Court decision relying on a Kerala High Court ruling where enforcement of demand was deferred pending appellate proceedings.
Considering the facts and earlier judicial decisions, the High Court directed the Appellate Authority to dispose of the pending appeals expeditiously, preferably within two months. The Court further ordered that until disposal of the appeals, the petitioners’ bank accounts should be de-frozen and the petitioners permitted to operate them, subject to the final outcome of the appellate proceedings.
