Tax Assessment Orders Impacting Retired Individuals: Court Allows Account Access Amid COVID-19

The court addressed issues related to assessment orders by Income Tax Authorities against retired personnel, focusing on undue hardship faced and stay petitions filed. In response to the COVID-19 pandemic, the court directed banks to allow petitioners to operate their accounts, with specific conditions. One petitioner had funds set aside in a fixed deposit account pending appeal, while the other was permitted to operate their account after paying a sum. The court emphasized these measures due to the pandemic and urged prompt decision-making by the appellate authority, with the cases to be listed before the appropriate Bench post-normal court operations.

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Issues:
1. Order of assessment by Income Tax Authorities against retired personnel.
2. Undue hardship faced by retired personnel due to notice of recovery.
3. Stay petitions filed by the writ petitioners.
4. Directions sought by the petitioners regarding operating bank accounts.
5. Compliance with Supreme Court order during COVID-19 pandemic.
6. Stay of attachment orders on bank accounts.
7. Clarification on measures taken due to COVID-19 pandemic.
8. Instructions for the appellate authority to decide the appeals promptly.
9. Listing of writ petitions before the appropriate Bench.

Analysis:
1. The judgment involves two writ petitions concerning retired personnel, one from the police department and the other from the education sector, who are facing an order of assessment by the Income Tax Authorities. Both petitioners have filed individual appeals against the assessment, with pending stay petitions awaiting a decision by the appellate authority.

2. The petitioners, being retired, are experiencing undue hardship due to the notice of recovery issued by the revenue authorities. The advocate for the petitioners argues that appeals against assessment orders are typically admitted based on a percentage of the revenue demanded. One petitioner has already had over Rs. 2 lakhs deducted from their bank account, while the other petitioner is yet to have any amount recovered from their accounts, with the revenue authorities demanding sums exceeding Rs. 10 lakhs and Rs. 12 lakhs, respectively.

3. Considering the impact of the COVID-19 pandemic, a previous Supreme Court order dated March 20, 2020, directed the revenue authorities not to initiate recovery proceedings during this period. To address the situation, the court directs the banks of the petitioners to allow them to operate their accounts, subject to certain conditions.

4. In the case of one petitioner, the bank is instructed to set aside Rs. 5 lakhs in an interest-bearing fixed deposit account, pending the appeal's outcome. The petitioner can then operate the account in compliance with the law, with a stay on the attachment order.

5. For the other petitioner, who has already paid Rs. 2 lakhs to the revenue authorities, the court deems it appropriate to allow them to operate their bank account, thereby staying the attachment order issued by the revenue authorities.

6. The court emphasizes that these measures are implemented due to the ongoing COVID-19 pandemic and that none of the observations made should prejudice any party in the appeal process. The appellate authority is urged to decide on the appeals promptly and in accordance with the law.

7. Finally, the judgment instructs to list both writ petitions before the appropriate Bench once normal court operations resume and advises the parties to act based on a server copy of the order for compliance.

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