2013 (12) TMI 143 - HC - Income Tax

Pending assessments - Non-alienation of property without prior permission - Provisional attachment order Held that - The assessee against whom the attachment order has been passed is one of the petitioners - The assessments for the years 2011-2012 and 2012-2013 are still pending - It is not appropriate to interfere with the order and its extension - The assessing Authority is directed to complete the assessment for the years within the extended period Decided in favour of petitioner.

Summary

Issues:
Provisional attachment order validity; Transfer of property and tax liability; Maintainability of the writ petition; Completion of assessments for pending years.

Analysis:
The High Court of Karnataka heard a writ petition challenging an order of provisional attachment passed by the first respondent due to pending assessments for the years 2011-2012 and 2012-2013. The impugned order directed the assessee not to alienate properties without prior permission. The petitioners contended that the order was legally unsustainable. The first petitioner claimed a share in a property under a joint development agreement, arguing against the attachment. The second petitioner asserted no property transfer had occurred, thus no tax liability existed. The respondents argued the writ petition was not maintainable and justified the extension of the attachment order due to pending assessments. They relied on previous decisions to support their stance.

The court considered the validity of the provisional attachment order and its extension. It noted the Assessing Authority's actions and the pending assessments. The court stated that the issue of property transfer and tax liability could not be addressed in the writ petition. While acknowledging the extension of the attachment order, the court directed the Assessing Authority to complete the pending assessments within the extended period of six months. The second petitioner was instructed to cooperate with the assessment process. The court disposed of the writ petition, leaving the contentions of the parties open for future proceedings.