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2018 (1) TMI 746 - HC - Income TaxGarnishee Notice u/s 226(3) addressed to the Special Tahsildar, calling to pay the arrears of tax payable by the company - Income Tax Department concern with the land acquisition proceedings or the compensation amount - According to the petitioners, the lands owned by them stand covered in the area, which is now proposed to be retained in the acquisition proceedings and the payment of compensation as awarded is in the advanced stage of being settled and probably within 30 days, the compensation amount will be paid to the Department - Held that:- This Court is of the considered view that the demand in the impugned assessment order can remain stayed till the disposal of the appeals by the Commissioner of Income Tax (Appeals) subject to a condition. Accordingly, W.P. is allowed and the garnishee notice dated 06.7.2016 is set aside subject to the condition that both the petitioner company and the Managing Director of the company pay 20% of the disputed tax for all the assessment years within a period of five weeks from the date of receipt of a copy of this order. If the petitioners comply with the above condition, payment of balance tax shall remain paid till the disposal of the appeals pending before the Commissioner of Income Tax (Appeals-II), Chennai. In the event the petitioners fail to comply with said condition as ordered above within the time stipulated, the Income Tax Department is entitled to initiate recovery proceedings.
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