Noble John Vs CIT (Appeals) (Kerala High Court)
Kerala High Court permitted income tax department to withdraw 20% of the total tax demand as a condition for stay. Court also directed to lift the attachment over the bank accounts on receipt of the sum.
Facts- This writ petition has been filed challenging order attaching certain bank accounts of the petitioners. The petitioners are Directors of a Private Limited Company named Covenant Stones Private Limited (the Company). Assessment of the Company was completed for the period from 2014-15 to 2019-20 resulting in a demand for a sum of Rs.32,10,37,345/-. The Company filed appeals before the 1st Appellate Authority and approached this Court by filing an appeal, which was disposed of on 21.12.2022 directing the Appellate Authority to consider and pass orders on the stay petitions filed in the statutory appeals and further directing that recovery proceedings shall remain suspended till orders are passed on the stay petitions. The Appellate Authority vide order dated 13.09.2023 directed stay of further recovery on payment of 20% of the total tax demand.
Conclusion- Held that the Income Tax Department is permitted to withdraw from the bank accounts of the Company/petitioners a total sum of Rs.6,42,07,469/- towards 20% of the amount directed to be paid as a condition for stay by the First Appellate Authority in order. On the said amount being received in the account of the Income Tax Department, order will stand withdrawn, making it clear that it will always be open to the Authorities to pass fresh orders under Section 179 of the Act, if circumstances for exercise of jurisdiction under Section 179 of the Act subsists in future. Further, any attachment over the bank accounts will also be lifted on receipt of the sum of Rs.6,42,07,469/-.
