2014 (1) TMI 990 - HC - Income Tax

Lifting of attachment order - Held that - The total outstanding dues are Rs.4,13,64,121 - On 26.09.2013, a sum of Rs.12,00,000/- has been paid and therefore, the balance of Rs.1,94,82,061/- out of the 50% demand, is the outstanding to be deposited - A sum of Rs.3,03,71,740/- is the refund which the petitioner is eligible for, for the assessment years 2012-13 and 2013- 14 - The petitioner submitted that he would not press for refund of the aforesaid amount and till the disposal of the appeal pending before the fourth respondent, no coercive steps may be initiated against the petitioner with regard to payment of balance 50% of outstanding dues. The authorities were directed to dispose of the appeal filed by petitioner on or before 28.02.2014 - Till then, the petitioner shall not press for refund of Rs.3,03,71,740 - Respondents are directed not to take any precipitative action in regard to the balance outstanding dues - The respondents were also directed to lift the attachment in respect of other bank accounts forthwith.

Summary

Issues:
1. Modification of communication dated 29.10.2013 and direction against respondent No.1 from recovering balance taxes.

Analysis:
The petitioner sought modification of a communication dated 29.10.2013 and a direction against respondent No.1 to prevent the recovery of balance taxes. The petitioner had appealed before the Commissioner of Income Tax (Appeals) challenging an order under Sections 201(1) and 201(1A) of the Income Tax Act. During the appeal, the third respondent instructed the petitioner to remit 50% of the demand, threatening recovery actions under the Act. The petitioner's bank accounts were even attached. An interim order lifted the attachment on one bank account. The petitioner requested to withhold coercive actions until the appeal's disposal.

The petitioner's counsel stated that the total outstanding dues were Rs.4,13,64,121, with Rs.1,06,82061 under stay order. A partial payment of Rs.12,00,000 was made, leaving a balance of Rs.1,94,82,061. The petitioner claimed a refund of Rs.3,03,71,740 for assessment years 2012-13 and 2013-14, agreeing not to press for it until the appeal's resolution. Respondents argued that the petitioner's request should be contingent on the appeal's outcome, suggesting an expedited disposal without pressing for the refund claim.

Consequently, the court directed the fourth respondent to resolve the petitioner's appeal by 28.02.2014. Until then, the petitioner was instructed not to pursue the Rs.3,03,71,740 refund. Respondents were barred from taking precipitative actions on the outstanding dues and were ordered to lift the attachment on other bank accounts immediately. The writ petitions were disposed of under these terms, with a caution that if the petitioner failed before the fourth respondent, the respondents could adjust the refund or initiate recovery proceedings lawfully.