2013 (2) TMI 378 - HC - Income Tax

Attachment order of 11 bank accounts - assessee failed to comply directions given under partial stay allowed directed to pay a sum of Rs.15 crores for first installment - Held that - The petitioner has already filed an appeal which is pending before the CIT (Appeals). After hearing the counsel for the parties it would appropriate to direct the CIT(Appeals) to dispose of the appeal by 31.03.2013 & also direct that the attachment order be lifted by the respondents subject to the petitioner paying a sum of Rs.2.10 crores by 15.03.2013, which would bring it in-line with the schedule of payment directed under the order dated 14.12.2012. In case the said payment is made, the balance amount shall remain stayed till orders are passed by the CIT(Appeals) in the appeal.

Summary

Issues:
1. Stay of recovery of demand sought by the petitioner.
2. Rejection of stay application by Assessing Officer.
3. Partial stay granted by Director of Income Tax.
4. Attachment of petitioner's bank accounts due to non-payment.
5. Appeal pending before Commissioner of Income Tax (Appeals).
6. Directions regarding disposal of appeal and lifting of attachment order.

Analysis:
The petitioner sought a stay of recovery of a demand amounting to Rs.34,68,87,165 for the assessment year 2009-10. The Assessing Officer rejected the stay application, leading the petitioner to approach the Director of Income Tax, who partially allowed the stay by directing payment of Rs.15 crores in instalments. However, due to non-payment of the first instalment of Rs.2.25 crores by the specified date, the respondent attached 11 bank accounts of the petitioner. The petitioner, aggrieved by the attachment order and the partial stay, approached the High Court.

The High Court noted that the petitioner had already filed an appeal pending before the Commissioner of Income Tax (Appeals). After hearing both parties, the Court directed the Commissioner of Income Tax (Appeals) to dispose of the appeal by a specified date. Additionally, the Court ordered the lifting of the attachment on the condition that the petitioner pays Rs.2.10 crores by a certain date, aligning with the payment schedule directed earlier. If the payment is made, the balance amount would remain stayed until the Commissioner of Income Tax (Appeals) passes orders in the appeal.

In conclusion, the High Court disposed of the writ petition with the mentioned observations and directions, ensuring that the appeal process is expedited and providing relief to the petitioner by lifting the attachment order upon compliance with the specified payment.