2019 (7) TMI 235 - SC - Income Tax

Stay of demand - present demand is to the tune of Rs. 9, 33, 16, 434 - in last interim order court has held that petitioner is at liberty to deposit appropriate amount in cash by way of security and attachment in respect of one property was lifted as well as three accounts which were also under attachment were released - HELD THAT - All this was done with the idea that the petitioner shall pay reasonable amount. It however appears that no concrete steps have been taken by the petitioner. As a last opportunity we grant to the petitioner time of six weeks within which he shall deposit a sum of Rs. 5 crores with Principal Commissioner Income Tax Chennai failing which this petition may be dismissed.

Issues:
1. Petitioner's request for lifting attachment on properties.
2. Failure of the petitioner to take concrete steps to resolve the matter.
3. Granting a final opportunity to the petitioner to deposit a specific sum.

Issue 1: Petitioner's request for lifting attachment on properties

The petitioner submitted that a demand of Rs. 9,33,16,434 was made by the department, with properties worth over Rs. 40 crores under attachment. The court allowed the petitioner to appear before the Principal Commissioner, Income Tax, Chennai, with documents showing properties worth more than Rs. 9.33 crores as security, unencumbered, and the option to deposit cash as security. If satisfied, the Principal Commissioner could lift the attachment on other properties to facilitate payment as per the High Court's order. Subsequently, one property's attachment was lifted, and three accounts were released, expecting the petitioner to pay a reasonable amount. However, the petitioner failed to take concrete steps, leading to the court granting a final opportunity.

Issue 2: Failure of the petitioner to take concrete steps to resolve the matter

Despite the court's leniency and the lifting of attachments on certain properties and accounts, the petitioner did not show substantial progress in resolving the outstanding dues. As a final chance, the court granted the petitioner six weeks to deposit Rs. 5 crores with the Principal Commissioner, Income Tax, Chennai. Failure to comply with this directive would result in the dismissal of the petition. This decision was made due to the lack of proactive measures on the petitioner's part to address the financial obligations as per the court's previous orders.

Issue 3: Granting a final opportunity to the petitioner to deposit a specific sum

In light of the petitioner's inaction and failure to make significant payments towards the outstanding demand, the court issued a final ultimatum. The petitioner was given a strict deadline of six weeks to deposit Rs. 5 crores with the Principal Commissioner, Income Tax, Chennai. This deadline was set to ensure the petitioner's compliance with the court's directives and to expedite the resolution of the financial liabilities. The court scheduled a follow-up hearing on 19.8.2019 to review the petitioner's adherence to the payment deadline and determine further actions based on the outcome.

This detailed analysis of the judgment highlights the court's progressive approach in addressing the petitioner's financial obligations while emphasizing the importance of timely compliance and proactive measures in resolving legal disputes.

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