2024 (5) TMI 979 - HC - Income Tax

Demand of tax - Attachment orders without there existing any outstanding demand of tax - HELD THAT - Demand sustained in the first appeal proceedings by the Tribunal, stands satisfied. There is no outstanding demand as on date. Yet the earlier provisional attachment was not lifted. In fact the respondents have issued a fresh provisional attachment order dated 7.2.2024 without there existing any outstanding demand of tax. Respondent prays for and is granted three weeks time to obtain instructions. If factual assertion made learned counsel for the petitioner is true, necessary corrected steps may be taken in the meanwhile. Put up on 18th April, 2024 as fresh.

Summary

Issues involved: Provisional attachment order without outstanding tax demand.

Summary:

The High Court addressed the issue of a provisional attachment order issued without any outstanding tax demand. The petitioner argued that the demand of tax, as sustained in the first appeal proceedings by the Tribunal, had been satisfied, and there was no outstanding demand at present. However, the earlier provisional attachment had not been lifted, and a fresh provisional attachment order was issued by the respondents despite no existing outstanding tax demand.

The Court granted three weeks to the respondent to obtain instructions. If the factual assertion made by the petitioner's counsel was found to be true, corrective steps were to be taken in the meantime. The case was scheduled to be reviewed on 18th April, 2024, for further proceedings.