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Synopsis

In a recent ruling, the Madras High Court, in consideration of the petitioner's age and health condition, ordered the income tax department to release the attachment on the petitioner's pension account.

This decision was made by the bench comprising Justice R. Mahadevan and Justice Mohammed Shaffiq, taking note of the fact that the entire pension amount, including arrears, remained in the petitioner's pension account. Only a sum of Rs 1,35,000 in that account pertained to other funds, the bench noted. 

The case at hand involved a writ appeal filed by the petitioner, seeking the removal of the attachment placed by the respondent department on two accounts held at the State Bank of India.

A prior single judge bench ruling had directed the department to lift the attachment concerning the petitioner's pension. However, the petitioner was restricted from withdrawing any other funds in the attached account, with clear instructions that only the pension credited by the pension-paying authority could be withdrawn.

The single judge bench had also directed the respondent to communicate this decision to the bank and directed the Appellate Commissioner to expeditiously handle the appeals that were referred back to them, preferably within three months.

Dissatisfied with the earlier ruling, the petitioner filed a writ appeal.

The division bench, considering the petitioner's age and health condition, noted that one of the petitioner's bank accounts was specifically for pension funds. As an interim measure, the division bench earlier ordered the release of this account to meet the petitioner's essential needs. Out of the available balance of Rs. 15,48,893.66, a sum of Rs. 5,00,000 would be retained in the account, while the remainder would be transferred to another account which remained under attachment, the division bench had ordered. 

However, the petitioner requested permission to operate the pension accruing account for health-related expenses.

The court granted this request, allowing the petitioner to carry out transactions using the funds in the pension account, except for the sum of Rs. 1,35,000, which the petitioner claimed belonged to other funds. This specific amount was to be transferred from the pension account to the other account still subject to attachment.

Court ordered that the petitioner's other account shall be continued in attachment till the conclusion of the proceedings by the appellate authority.

Case Title: G.K.Reddy v. Deputy Commissioner of Income Tax Corporate Circle 1(1) Chennai