President’s Personal Bank Account Can’t Be Freezed For Club’s Tax Liability: Madras High Court
President’s Personal Bank Account Can’t Be Freezed For Club’s Tax Liability: Madras High Court
The Madras High Court has held that the president’s personal bank account can’t be freezed for the club's tax liability.
The bench of Justice S. Srimathy has quashed the order to the extent the liability is fixed on the petitioner/President of the Club. Consequently, the bank is directed to lift the attachment of petitioner's personal account.
The petitioner is the president of a club, namely Dayton Club, which has a separate TIN number, PAN number and a separate bank account in ICICI Bank. While the club has defaulted in paying the tax, the respondents have initiated proceedings and have attached the bank account belonging to the club. However, when the petitioner's name was found in the assessment order along with the club name, the petitioner's personal account was also frozen by the respondent bank. The contention of the petitioner is that the petitioner's personal account cannot be frozen when the liability is fixed on the club.
The court while allowing the petition quashed the extent the liability is fixed on the petitioner and directed the bank to lift the attachment.
Case Details
Case Title: M. Jaiganesh Versus The State Tax Officer
Case No.: W.P(MD)No.14547 of 2025 And W.M.P.(MD)No.10768 and 10773 of 2025
Date: 22.05.2025
Counsel For Petitioner: T. Bashyam
Counsel For Respondent: D. Gandhi Raj
Mariya is the Senior Editor at JurisHour. She has 5+ years of experience on covering tax litigation stories from the Supreme Court, High Courts and various tribunals including CESTAT, ITAT, NCLAT, NCLT, etc. Mariya graduated from MLSU Law College, Udaipur (Raj.) with B.A.LL.B. and also holds an LL.M. She started as a freelance tax reporter in the leading online legal news companies like LiveLaw & Taxscan.
