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TMI Blog2019 (1) TMI 1085X X X X Extracts X X X X X X X X Extracts X X X X ..... ater on passed the impugned order on 18th December, 2018, rejecting the stay applications of the Petitioner-Trust. This would give rise to recovery of entire tax of around ₹ 142 Crores with interest. It would be open to and in fact, department has initiated coercive recovery. Whatever be the interim events, we cannot lose sight of the fact that the Tribunal in its order dated 10th November, 2017 had found prima facie case in favour of the Petitioner which persuaded the Tribunal to grant stay against and further recoveries on the condition of depositing ₹ 18 Crores. Not protecting the Petitioner-Trust at this stage, may have severe adverse effect on running its several educational and medical institutions, rendering the sta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... P.C: Heard learned Counsel for the parties for final disposal of the Petition. 2. This Petition has chequered history. We may record the brief background. 3. Petitioner is a trust, running several educational institutions and hospitals. The Income Tax Authorities had raised sizeable tax demand against the Petitioner-Trust in relation to the Assessment for the Assessment Years 200910 to 201415. Petitioner-Trust has filed Appeals before the Income Tax Appellate Tribunal (for short the Tribunal ), Pune against such Assessment and Appellate Orders. Pending such Appeals, Petitioner had also prayed for interim injunction against the recovery of the unpaid tax and interests before the Tribunal. Tribunal passed a detailed order on 10th N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d of 180 days from the date of this order or till disposal of the appeal, whichever is earlier. In the result, all the stay, applications filed by the applicant are allowed as indicated above. 4. Petitioner-Trust challenged the said conditional order of the Tribunal before the High Court, by filing Writ Petition No. 13099 of 2017. In the said Petition, this Court noticed a misrepresentation of the Court's order by the President of the Petitioner-Trust and in connivance with the Income Tax Officer, the Trust had withdrawn sizeable amount from its bank accounts. The Division Bench of this Court, therefore, passed a detailed order on 5th January, 2018 dismissed the Petition on ground of such misdemeanor. The Court also initiated suo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nditions, the Department now seeks recovery of the entire tax dues which is in the vicinity of ₹ 142 Crores with interest. He submitted that, even the Tribunal in its earlier order dated 10th November, 2017 recorded that, Petitioner-Trust has, prima facie, case. Counsel submitted that the Petitioner-Trust runs several educational institutions and hospitals. On account of the tax dues and the coercive recovery initiated by the Department, the Petitioner-Trust finds it extremely difficult to run these institutions. He further submitted that in the different bank accounts, which are under the attachment of the Department, a sum of ₹ 18 Crores is already lying. He clarified that this includes a sum of ₹ 1,11,37,877/payable by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rores in three equal installments. Since Petitioner-Trust could neither have these conditions altered, nor could the Petitioner-Trust fulfill the conditions, the Tribunal later on passed the impugned order on 18th December, 2018, rejecting the stay applications of the Petitioner-Trust. This would give rise to recovery of entire tax of around ₹ 142 Crores with interest. It would be open to and in fact, department has initiated coercive recovery. Whatever be the interim events, we cannot lose sight of the fact that the Tribunal in its order dated 10th November, 2017 had found prima facie case in favour of the Petitioner which persuaded the Tribunal to grant stay against and further recoveries on the condition of depositing ₹ 18 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, we direct that since the amount has now been credited to the account of the State of Maharashtra and the account of this Court in the RBI is now debited, as is clear from the certificate tendered today, let the State Government retain that sum till 5th July, 2018 with it without making any adjustment or appropriation towards its outstanding dues nor it should remit the same to the Management. If within this time suitable orders and directions are obtained by the petitioner-Management from the Bench, which is assigned cases under the direct tax laws, our order would take due note of the same and thereafter, further directions would be issued. In the event no clarifications/directions are obtained within this time, on the adjourned date, t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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