2024 (5) TMI 449

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....RA KUMAR KAURAV, J. 1. The petitioners seek directions to de-freeze the bank accounts and to set aside the letter dated 30.04.2023 issued by the respondents. Since an identical question of law is involved, hence, these petitions are being decided by a common judgment. For the sake of brevity, the facts are being extracted from W.P. (C) No. 1026/2024. 2. Mr. Pranay Jain, learned counsel for the petitioners, submitted that vide letter dated 30.04.2023, while calling for information under Section 133 (6) of the Income Tax Act 1961 ["Act"], the bank accounts of the petitioners were unjustifiably frozen. According to him, as per the mandate of Section 132(8-A) of the Act, the freezing of bank accounts ceases to have effect after the expiry of ....

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....ked to explain the nature of their transactions with the bank accounts under consideration, however, no response has been received from the petitioners till date. He, therefore, contended that the accounts of the petitioners have been lawfully frozen owing to the urgency during the course of the search. He also submitted that since the case of the petitioners has been sent for assessment to the concerned Assessing Officer ["AO"], the AO should be allowed to consider the aspect of defreezing the bank accounts after the completion of the scrutiny assessment. 6. We have heard the learned counsels appearing for the parties and perused the record. 7. The limited aspect which needs our consideration is whether the action of the respondents in f....

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....aid period of sixty days had already expired before the filing of the present petitions and no subsequent order appears to have been passed for extending the freezing of accounts. Since the order in question was issued on 30.04.2023, the rigour period stood concluded by 30.06.2023, therefore, the perpetuation of freezing of the bank accounts is completely unsustainable and dehors the provisions of the Act. 10. The aforesaid legal position was noticed by us on the very first date of hearing. We, however, directed the Revenue to obtain instructions with respect to the issue under consideration. On the following date of hearing i.e., on 28.02.2024, a further three weeks' time was granted to the Revenue to file a reply. Subsequently, when the ....