Court directs deposit of remaining disputed amount, refunds garnishee notices, and withdraws upon deposit.

The Court found merit in the revenue's submissions and directed the petitioner to deposit the remaining 10% of the disputed amount with the respondent within two weeks. The writ petition was disposed of, instructing the respondent to refund any amount collected from the petitioner's bankers through the garnishee notices and withdraw the notices, subject to the petitioner's undertaking to deposit the remaining 10% within the specified timeframe.

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Issues:
1. Writ of mandamus sought to withdraw Garnishee notices dated 12.02.2019 issued to petitioner's bankers for Assessment Year 2016-2017.

Analysis:
The petitioner filed a writ petition seeking a mandamus to direct the respondent to withdraw Garnishee notices related to the Assessment Year 2016-2017. The petitioner contended that after receiving the assessment order under S.143(3) of the Income Tax Act, a demand notice was issued, and a portion of the disputed demand was paid. The petitioner challenged the assessment order through a First Appeal, and a stay application was disposed of by the respondent. During the pendency of the stay application, garnishee notices were issued. The department recovered an amount from the petitioner's bankers, which remains uncashed. The petitioner requested the restoration of the amount and the opportunity to address the matter before the Appellate Authority.

The revenue's counsel argued that as per the Office Memorandum dated 29.02.2016, if the assessee is dissatisfied with the stay order, they should approach the administrative Pr. CIT/CIT for a review. The petitioner's appeal before the Commissioner of Income-tax (Appeals) was deemed inadmissible. The revenue contended that if the balance ten percent of the demand is paid, as required by the Competent Officer, it shall be considered.

After considering the arguments, the Court found merit in the revenue's submissions. It noted that the Assessing Officer could grant an interim stay order upon payment of 20% of the disputed demand, although the petitioner had paid only 10%. The Court directed the petitioner to deposit the remaining 10% of the disputed amount with the respondent within two weeks. The writ petition was disposed of, instructing the respondent to refund any amount collected from the petitioner's bankers through the garnishee notices and withdraw the notices, subject to the petitioner's undertaking to deposit the remaining 10% within the specified timeframe.

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