Vinayan K Vs Income Tax Department (Kerala High Court)
The petitioners, a husband and wife, maintained a bank account with the 3rd respondent bank. Their account had been frozen based on a written request issued by the Income Tax Department under Section 132(3) of the Income Tax Act, 1961, dated 11.08.2025.
The petitioners contended that the prohibitory order could remain in force only for 60 days under Section 132(8A) of the Income Tax Act. They stated that although this period had expired, the bank continued to prevent them from operating the account because the Income Tax authorities had not issued a communication lifting the prohibition. They therefore approached the Kerala High Court seeking directions to remove the prohibitory order.
During the hearing, the Standing Counsel for the Income Tax Department submitted that there were, as of then, no prohibitory orders concerning the freezing of the petitioners’ account.
In view of this submission, the High Court disposed of the writ petition by declaring that, in the absence of any prohibitory order from the Income Tax Department, the petitioners were entitled to operate their bank account. The Court directed the 3rd respondent bank to take the necessary steps accordingly.
FULL TEXT OF THE JUDGMENT/ORDER OF KERALA HIGH COURT
