2017 (5) TMI 1469 - SC - Indian Laws

Refund of tax due to the assessee - Held that - We direct the Income Tax Authorities to pay the said amount of 192.54 crores to the Custodian with interest at the rate of 18% from the date of passing of the refund order within a period of 12 weeks from today. As made clear that this direction has been given having regard to the peculiar facts of this case and shall not be treated as a precedent. The orders (Ninety) which have already been passed by the ITAT directing the Revenue to re-frame the assessment by taking into account the evidence of books of accounts should be decided by the Assessing Authority within a period of 12 weeks from today. Sofar as the flats in question are concerned no steps including selling of the same shall be taken until final distribution is made by the Custodian. The Custodian is directed to disburse the said amounts to the Banks subject to the usual Affidavit-cum-Undertaking stating therein that the concerned Bank (s) shall bring back the amount or any part thereof if so directed by the concerned Court on such terms and conditions as may be directed.

Summary

Issues Involved:
1. Refund of tax to the assessee
2. Assessment orders passed by ITAT
3. Group issue 235
4. Flats distribution by Custodian
5. Status quo orders related to amounts due to banks

Analysis:

Refund of Tax to the Assessee:
The Supreme Court directed the Income Tax Authorities to pay the amount of ?192.54 crores to the Custodian with interest at the rate of 18% within 12 weeks from the date of the refund order. It was clarified that this direction was specific to the case and should not be considered a precedent.

Assessment Orders Passed by ITAT:
The Assessing Authority was instructed to decide on the 90 orders passed by the ITAT, directing the Revenue to re-frame the assessment by considering the evidence of books of accounts within 12 weeks from the current date.

Group Issue 235:
The Court found that the group issue 235 was unfavorable to the appellants based on a previous judgment by the Court in Rasila S. Mehta and Others vs. Custodian, Nariman Bhavan, Mumbai.

Flats Distribution by Custodian:
No action, including selling the flats in question, was permitted until the final distribution by the Custodian was completed.

Status Quo Orders Related to Amounts Due to Banks:
The status quo orders from previous cases were vacated concerning the amounts due and payable to the banks, except Canfina. The Custodian was directed to disburse the total principal decree amount of ?639.09 crores to the banks subject to an Affidavit-cum-Undertaking ensuring compliance with any future court directives.

The appeal was disposed of based on the above terms, resolving the issues raised in the case comprehensively.