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2016 (7) TMI 213 - HC - Income TaxAttachment orders u/s 281B - Assessment u/s 153A in pursuance of Search is pending - estimated tax liability - Held that:- Since the assessment pursuant to the search operations is pending, we would not comment on rival claims of the possible additions that may be made in the total income of the assessee. However, going by the rough formula presented by the revenue and in order to strike a balance between protecting the interest of the revenue and at the same time allowing the petitioner to carry on its normal business, we propose to provide for a formula. Even if the figure of addition of ₹ 60 and odd crores is taken for the purpose of roughly estimating the possible tax liability, the same cannot exceed ₹ 25 crores, at least of principal tax. As noted the contention of the counsel for the petitioner that number of immovable properties of the petitioner are unencumbered and free from any charge. Jantri value of such properties runs into several hundred crores of rupees. However, the petitioner company may be in the process of developing, constructing upon or selling such properties as part of its business activities. In view of such facts, the orders of attachment are directed to be lifted upon fulfillment of following conditions: I. The petitioner shall keep immovable properties unencumbered, not creating any charge whose jantri value together shall not be less than ₹ 25 crores till the assessments pursuant to notice under section 153A are completed. II. The petitioner shall give a list of such properties to the department latest by 05.07.2016 alongwith which, the petitioner shall indicate the current jantry rate with supporting documents. The petitioner shall also file an affidavit stating that such properties are free from any encumbrance and that the petitioner shall not create any charge on such properties till the assessments are completed. III. As soon as this is done, the order of attachment qua rest of the properties shall automatically stand lifted. In other words, the petitioner would be free to deal with the rest of the properties. IV. Jayantibhai Dalsukhbhai Panchal, the director of the petitioner company, who has sworn this petition, shall file an undertaking before this Court latest by 05.07.2016 declaring that whatever the tax with interest and penalty liabilities are ultimately crystallized, company shall pay to the department.
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