Simran Sunil Ahuja Vs Union of India (Telangana High Court)
Telangana High Court Directs Income Tax Department to Consider Defreezing Daughter’s Bank Account Attached for Father’s Tax Dues
The Telangana High Court provided interim protection to a daughter whose bank account was attached by the Income Tax Department while recovering tax dues from her father. The Court observed that if the petitioner had no debtor-creditor relationship with the assessee father as contemplated under Section 226(3) of the Income-tax Act, 1961, she was entitled to seek defreezing of her account through a proper representation before the tax authorities.
Introduction
In Simran Sunil Ahuja vs Union of India & Others, the Telangana High Court examined the legality of freezing a bank account belonging to the daughter of an assessee whose tax dues were under recovery proceedings.
The petitioner argued that her account had been wrongly attached despite having no financial liability towards her father’s tax obligations and sought permission to operate her account.
Recognizing the petitioner’s grievance, the Court directed the Income Tax Department to consider her application for defreezing the account and granted temporary protection against any debit recovery action.
Case Background
The dispute arose after:
- The Income Tax Department initiated recovery proceedings against the petitioner’s father under Section 226(3) of the Income-tax Act, 1961.
- A notice dated 10.09.2025 was issued for attachment of bank accounts.
- The petitioner’s bank account was also frozen.
- The account had reportedly been opened during her minority.
- The petitioner claimed she neither owed any money to her father nor held funds on his behalf.
Aggrieved by the freezing of her account, she approached the Telangana High Court.
