Court orders quick decision on pension release, grants stay of demand, bank account release possible.

The High Court directed the Assessing Officer to decide on the application for release of the pension account within two weeks. The writ applicant was permitted to seek a stay of demand from the CIT(A), who could grant relief leading to the release of the attached bank accounts if approved.

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Issues involved:
Challenge to assessment order under Section 144 read with Section 147 of the Income Tax Act, 1961; Attachment of bank accounts by Assessing Officer under Section 226(3) of the Act; Application for release of pension account from attachment; Jurisdiction of Assessing Officer and Commissioner of Income Tax (Appeals) (CIT(A)).

Analysis:
The writ applicant, a retired government servant, challenged the assessment order for the assessment year 2012-13, which was reopened under Section 147 of the Income Tax Act based on information regarding cash received. The Assessing Officer determined the total income and issued a demand notice along with a penalty notice for concealment of income. The writ applicant appealed this order under Section 246(A) of the Act before the CIT(A).

Regarding the attachment of bank accounts by the Assessing Officer, including a pension account, the writ applicant filed an application for release of the pension account from attachment. The application is pending consideration by the Assessing Officer. The High Court directed the Assessing Officer to decide on the application within two weeks from the date of the court's order.

The High Court also permitted the writ applicant to file an application before the CIT(A) for stay of demand. The CIT(A) has the authority to pass interim orders, including stay of recovery, pending the final disposal of the appeal. If the CIT(A) grants any relief to the writ applicant, the orders of attachment of the bank accounts would automatically cease to be in effect.

In conclusion, the High Court disposed of the writ application, emphasizing the need for the Assessing Officer to address the application for release of the pension account promptly and granting the writ applicant the opportunity to seek a stay of demand from the CIT(A) with the possibility of relief leading to the release of the attached bank accounts.

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