Use & applicability of S.C. decision in CIT,Madras v. Vinod kumar didwania etc. - Income Tax - 1601/CBDT

INSTRUCTION NO. 1601/CBDT Dated: February 15, 1985 Reference is invited to D.O. of even number dated 10th January, 1985 forwarding a note of the Ministry of Law and the judgement of the Supreme Court in the case of Assistant Collector of Central Excise Vs. Dunlop (India) Ltd. (Civil Appeal No. 4742-3/1984) observing that the balance of convenience in fiscal matters is in favour of the Government of India and the interim orders ought not to be granted merely because a prima-facie case has been shown. The Supreme Court in its order dated the 17th December, 1984 in the case of Commissioner of Income-tax, Madras and another Vs. Vinod Kumar Didwania etc. in civil Appeal No.5790 of 1984 found that the assessee had adopted the strategy of obtaining an ex-parte order of injunction from the court and thereafter removed the goods from the three godowns on the strength of the ex-parte order of injunction and then withdraw the writ petition with a view to defeating the prohibitory orders issued against him and took the goods out of the reach of the Income-tax Department. The Supreme Court agreed that the Department should be resituated by the assessee in respect of the goods removed by him under the ex-parte order of injuction obtained from the High Court. The copy of this judgement is enclosed herewith for information and appropriate use when required.