CWP NO.3121 IN THE H Baddi Universi Ve Commissioner and others 1. The date w 2. The date w 3. The date w 4. Whether pronounce pronounce 5. The delay judgment, CORAM : HO HO Present : Mr Mr for Ms For LAPITA BANE Pra the Constitution certiorari for qu issued by res (Exemptions), through its Chie the petitioner, 3121 OF 2026 (O&M) THE HIGH COURT OF PUNJAB A CHANDIGARH CWP NO. iversity of Emerging Sciences & Tec Versus ioner of Income Tax (Exemptions) C date when the judgment is reserved date when the judgment is pronounce date when the judgment is uploaded ether only operative part of the ju nounced or whether the full jud nounced delay, if any of the pronounceme ment, and reasons thereof HON’BLE MR. JUSTICE DEEP HON’BLE MS. JUSTICE LAPIT Mr. Sandeep Goyal, Senior Advoca Mr. Rishab Singla, Advocate, for the petitioner. Ms. Pridhi Jaswinder Sandhu, Seni For respondent-revenue department ANERJI, J. Prayer in the present petition filed itution of India, inter-alia, is for issuan for quashing of a letter dated January y respondent No.2-Deputy Com ons), Chandigarh to respondent N ts Chief Branch Manager for attachm being illegal and in contravention JAB AND HARYANA AT NO.3121 OF 2026 (O&M) & Technology ...Petitioner ons) Chandigarh ...Respondents 04.02.2026 ounced 12.02.2026 aded 13.02.2026 the judgment is judgment is Full ncement of full Not applicable DEEPAK SIBAL APITA BANERJI dvocate with , Senior Standing Counsel rtment. n filed under Articles 226/227 of issuance of a writ in the nature of anuary 14, 2026 (Annexure P-16) Commissioner of Income Tax ent No.4-Punjab National Bank tachment of the bank accounts of ention of provisions of the Income SHALINI BHATIA 2026.02.13 15:35 I attest to the accuracy and integrity of this document CWP NO.3121 Tax Act, 1961 filed by the pe have been pendi for stay of ope pendency of the been made for petitioner on Ja 2022, April 29, 2. The i) The education to the of the 1961 12A(1)(ac)(i) of under Section 80 ii) For Income Tax Re under Section 1 notices under Se petitioner, callin iii) The September 23, Section 144B of made by disa salary/allowance Act. 3121 OF 2026 (O&M) 1961 (hereinafter referred to as “the 1 the petitioner before respondent No pending for more than three years. Th of operation of the letter dated Jan of the statutory appeal/the writ petitio e for expeditious disposal of the st on January 19, 2026 and the main 9, 2024 and January 19, 2026. The facts of the case in brief are as The petitioner, an income tax ass to the students. The petitioner is reg Act. It has further obtained )(i) of the Act and has obtained exe tion 80G(5). For the assessment year 2020- ax Return (ITR) by declaring ‘NIL’ tion 12A of the Act. The said ITR w der Section 143(2) and 142(1) of the calling for information. The said proceedings culminated r 23, 2022 (Annexure P-3) under 44B of the 1961 Act, whereby an addi disallowing the expenses on wances and certain other expenses “the 1961 Act”) since the appeals nt No.6-Commissioner (Appeals) ars. The petitioner has also prayed ed January 14, 2026 during the petition. Further, a prayer has also the stay application filed by the main appeals dated October 20, are as follows: ax assessee, is a Trust imparting is registered under Section 12AA ained registration under Section ed exemptions from time to time -21, the petitioner filed its NIL’ income claiming exemption ITR was selected for scrutiny and of the 1961 Act were issued to the nated into passing of order dated nder Section 143 (3) read with n addition of Rs.1,34,71,225/- was on account of Amortization, enses under Section13 (3) of the SHALINI BHATIA 2026.02.13 15:35 I attest to the accuracy and integrity of this document CWP NO.3121 iv) Pur (Annexure P- Rs.61,32,372/- v) Fee petitioner filed No.6 on Octob appeal and appli vi) For November 07, 2 subject to scruti (Annexure P-7) Act was passed disallowing vari vii) Pur (Annexure P-8) viii) Fee notice dated Ma Commissioner application was pending adjudic ix) Und 2024 imposing p year 2022-23. A Commissioner ( 3121 OF 2026 (O&M) Pursuant thereto, a demand notice -4) was issued to the petition -. Feeling aggrieved by the afore filed an appeal before the Commissi October 20, 2022 along with an app d application for stay are pending adju For the assessment year 2022-23, th r 07, 2022 declaring its income to b scrutiny proceedings. An assessment 7) under Section 143 (3) read wit assed whereby an addition of Rs.24,2 g various deductions as claimed by th Pursuant thereto, a demand noti 8) was issued raising a demand of Feeling aggrieved and dissatisfied ted March 30, 2024, the petitioner pre ioner of Income Tax (Appeals) on n was filed at the time of filing of th djudication before respondent No.6. Under Section 270A of the 1961 Ac osing penalty of Rs.5,17,89,691/- was 23. An appeal challenging the penalt ioner (Appeals) on January 19, 2026. Page 3 of 7 notice dated September 23, 2022 petitioner raising a demand of aforesaid demand notice, the missioner (Appeals)- respondent an application for stay. Both the g adjudication as on date. 23, the petitioner filed its ITR on e to be ‘NIL’. The said ITR was sment order dated March 30, 2024 ad with Section 144B of the 1961 s.24,29,49,067/- was proposed by by the petitioner. d notice dated March 30, 2024 nd of Rs.12,84,38,418/-. tisfied with the impugned demand ner preferred an appeal before the ls) on April 29, 2024. No stay the appeal. The said appeal is 61 Act, an order dated August 29, was imposed for the assessment penalty order was filed before the 026. SHALINI BHATIA 2026.02.13 15:35 I attest to the accuracy and integrity of this document CWP NO.3121 x) The the assessment y 15, 2023 and Ja in appeal for acknowledgmen (xi) D received several 12), February 2 and August 19 Admittedly, rep aforesaid notice xii) Vid issued by respon respondent No.4 petitioner maint demand of Rs.1 and 2022-23. xiii) Aft to the responden under Section 2 outstanding dem release of bank a SUBMISSIONS 3. Mr petitioner subm 3121 OF 2026 (O&M) The petitioner had filed its written ment year 2020-21 vide acknowledgm and January 09, 2025 (Annexure P- for the assessment year 202 dgment receipt dated January 21, 2025 During the pendency of the afore several recovery notices dated Novem uary 25, 2025 (Annexure P-13), July ust 19, 2025 (Annexure P-15) iss ly, replies were not filed on behal notices. Vide impugned letter dated January respondent No.3-National Faceless As t No.4-Punjab National Bank (PNB) maintained with respondent No.4-ban f Rs.18,63,57,371/- pertaining to the After the letter of attachment dated pondent No.4-Bank immediately the p ction 220(6) of the 1961 Act on Jan g demands for the assessment years 2 bank accounts. IONS Mr. Goyal, learned senior advocate submits that despite the appeals bei written submissions in appeal for ledgment receipts dated February -10). The written submissions 2022-23 was filed through , 2025 (Annexure P-11). aforesaid appeals, the petitioner ovember 12, 2024 (Annexure P- ), July 02, 2025 (Annexure P-14) 5) issued by respondent No.2. behalf of the petitioner to the anuary 14, 2026 (Annexure P-16) less Assessment Centre (NFAC) to (PNB), the bank accounts of the bank were attached to recover a the assessment years 2020-21 ted January 14, 2026 was sent the petitioner filed an application on January 19, 2026 for stay of ears 2020-21 and 2022-23 and for vocate appearing on behalf of the als being pending since long, the SHALINI BHATIA 2026.02.13 15:35 I attest to the accuracy and integrity of this document CWP NO.3121 respondent No.6 recovery notice 2025 and Augu not be responde oversee its tax r sent to the e-ma petitioner. Due accounts, the pe institute. The fix salary, statutory petitioner unless 4. Mr decided petition 2022. At least, a decided expedit been de-attached 5. Ms on advance noti done in accorda despite several application for s 2024. It is only the revenue auth 19, 2026 and pra 3121 OF 2026 (O&M) t No.6 failed to adjudicate the same. notices dated November 12, 2024, F August 19, 2025 had been issued by sponded to by the petitioner-trust as t s tax related issues had left his job. A mail id of the accountant who did . Due to illegal and arbitrary attach the petitioner is unable to meet the da The fixed monthly expenditure of Rs.1 tutory liabilities and expenses of mes unless it can operate its bank accounts Mr. Goyal further submits that th etitioner’s appeal expeditiously, first least, application for stay of the recove xpeditiously and the bank accounts o ttached. Ms. Sandhu, learned Standing coun ce notice to assist the Court and subm ordance with law as replies were veral recovery notices/reminders bein n for stay was filed along with the ap s only when the accounts of the petiti ue authorities, the petitioner filed app and prayed for expeditious disposal of same. Illegally and arbitrarily the , February 25, 2025, July 02, ed by the authorities which could st as the Accountant who used to job. All the recovery notices were o did not transmit the same to the attachment of petitioner’s bank the daily expenses of running the f Rs.1,38,46,316/- which includes f mess etc., cannot be paid by the counts. that the respondents should have , first of which is pending since recovery notices should have been unts of the petitioner should have g counsel for the revenue appears d submits that the attachment was were not filed by the petitioner being sent to it. Moreover, no the appeal preferred on April 29, e petitioner-trust were attached by ed application for stay on January sal of its appeals. The intention of SHALINI BHATIA 2026.02.13 15:35 I attest to the accuracy and integrity of this document CWP NO.3121 the petitioner w thereto. Therefo DISCUSSION A 6. Thi perused the mat 7. It a filed by the pet second appeal April 29, 2024 Section 270A o pending since been filed on Ja there may be no November 12, 2 and penalty orde the fact that the education to sev expenses of the the benefit of th accounts the ins interest of the s since filing of No.6-Commissi 8. The respondent No.6 3121 OF 2026 (O&M) ner was not bona fide in nature and r herefore, the present writ petition sho ON AND FINDINGS This Court has heard learned co e material on record. It appears that first appeal for th petitioner has been pending since ppeal for the assessment year 2022 2024 and the third appeal challenging 70A of the 1961 Act for the assessm ince January 19, 2026, along with an a on January 19, 2026 for stay of rec be no procedural infirmity in passin 12, 2024, February 25, 2025, July ty order dated August 29, 2024, still th at the petitioner-trust is an education to several students which is a benefici of the institute are required to be met it of the students. Unless the petitione the institution would stop running cau f the students. It is also true that a co ng of the first two appeals by the p missioner (Appeals) and the same are Therefore, this Court directs the t No.6 to decide all the three pendin e and rather indicated the contrary n should not be entertained. ned counsel for the parties and for the assessment year 2020-21 since October 20, 2022 and the 2022-23 has been pending since nging imposition of penalty under ssessment year 2022-23 has been an application of stay which has of recovery notices. Even though passing of recovery notices dated , July 02, 2025, August 19, 2025 still the Court cannot lose sight of cational institute that is imparting eneficial cause for the society. The e met for its day to day running for etitioner is able to access its bank ng causing severe detriment to the considerable time has elapsed the petitioner before respondent me are still pending adjudication. ts the Commissioner (Appeals)- pending appeals of the petitioner SHALINI BHATIA 2026.02.13 15:35 I attest to the accuracy and integrity of this document CWP NO.3121 filed vide ackno January 19, 202 of recovery noti certified copy of 9. In this Court direc Rs.1 crore in fa allowed to with expenses. 10. W disposed of. 11. Con accordingly. (DEEPAK SIB JUDGE FEBRUARY Shalini Whether speakin Whether reporta 3121 OF 2026 (O&M) acknowledgments dated October 20 9, 2026 or atleast the application date ry notices, within a period of one mont opy of this order. In the meantime, to balance the e t directs that upon furnishing of bank e in favour of the competent authority o withdraw a sum upto Rs.1 crore With the aforesaid directions, C Connected application(s), if any, s SIBAL) (LA DGE 12, 2026 speaking/reasoned: Ye reportable: Ye ber 20, 2022, April 29, 2024 and n dated January 19, 2026 for stay e month from the date of receipt of the equities between the parties, f bank guarantee/s to the tune of thority, the petitioner-trust will be crore only, for meeting its daily ons, CWP No.3121 of 2026 is any, shall also stand disposed of (LAPITA BANERJI) JUDGE Yes/No Yes/No SHALINI BHATIA 2026.02.13 15:35 I attest to the accuracy and integrity of this document