Computer Graphics Private Limited Vs Union of India (Madras High Court)
Garnishee proceedings stayed; Department directed to consider assessee’s representations before recovery: Madras HC
The Petitioner is a manufacturer. The Income Tax Department, based on CIC data; was of the view that some TDS dues for the period 2007-2008 to 2024-2025. The Petitioner replied stating that no dues were pending excepting some interest portion. However; the bank accounts of the Petitioner came to be attached under Section 226(3) of the Income Tax Act (garnishee proceedings). Hence; petition was filed.
The Hon’ble Madras High Court disposed off the petition by directing the Department to consider the representation of the Petitioner and pass a detailed speaking order. A hearing should be granted to the Petitioner. In the mean time; the recovery proceedings would be kept in abeyance.
Argued by Adv. Bharat Raichandani i/b UBR Legal
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
Heard the learned counsel for the petitioner and the learned counsel for the respondents.
2. With the consent of the learned counsel for the petitioner and learned Additional Government Pleader for the respondents, this writ petition is being disposed of at the time of admission.
3. The petitioner is before this Court against the impugned recovery proceedings dated 17.02.2026 under Section 226(3) of the Income Tax Act, 1961, whereby, the petitioner’s bank account with the fourth respondent has been attached for the alleged tax due of the petitioner for the Assessment Years 2007-2008 to 2024-2025.
