Balsingh Rajkumar Balsingh Vs DCIT (Madras High Court)
Madras High Court Keeps Recovery in Abeyance Pending Appeal & Rectification – Relief to Assessee on Bank Attachment u/s 226(3)
Petitioner filed two writ petitions challenging bank account attachment notices u/s 226(3) issued by the Income-tax Department for A.Ys. 2021-22 & 2022-23.
The attachments were made following assessment orders dated 19.03.2024 & 16.03.2024, respectively, and were directed to multiple banks — HDFC & State Bank of India – as well as the Petitioner’s client, Golden Homes Pvt. Ltd., to recover alleged tax dues.
Petitioner’s Case
Petitioner contended that:
- He had already filed appeals before the Commissioner of Income-tax (Appeals), NFAC, under Section 246A against both assessment orders.
- He had also filed rectification applications u/s 154 before the Assessing Officer, which were still pending disposal.
- Additionally, he had applied for stay of recovery before the Principal Commissioner of Income-tax, submitting written arguments on 17.10.2025.
- Despite the pendency of these proceedings, the Department proceeded to attach his bank accounts, causing severe hardship.
Revenue’s Stand
The Department defended the attachment but did not dispute that the stay petitions were already pending before the Principal Commissioner & fixed for hearing on 28.10.2025.
Court’s Observations
- The Petitioner had availed all statutory remedies — appeals under s.246A, rectification under s.154, & stay petitions before the superior authority.
- Since the stay application is scheduled for hearing on 28.10.2025, it would be improper to proceed with coercive recovery in the meantime.
Order
