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2019 (8) TMI 244 - HC - Income TaxProvisional attachment to protect revenue u/s 281B - AO also treated Long Term Capital Gains as a business receipt - demand of ₹ 873.4 crores outstanding - It was only meant to protect the interest of the revenue during the pendency of the assessment proceedings and prior to the determination of the final tax demand - petitioner contended that demand is finalized hence attachment is illegal - HELD THAT:- Respondents have already collected over ₹ 185 crores from the Petitioner, as against the total demand raised of around ₹ 873.4 crores. The year-wise percentage of demand collected for the years 2012-13, 2016-17 and 2017-18 is over 21%. In the circumstances the Court sees no reason why the attachment order under Section 281-B of the Act should be allowed to continue. Likewise, the attachment of the two bank accounts of the Petitioner under Section 226 (3) of the Act also does not appear to be justified. The Court accordingly sets aside the impugned order dated 19th January, 2019 passed by Respondent No. 1 under Section 281-B of the Act, thereby removing the attachment of the Petitioner’s assets mentioned therein and in particular also removing the attachment of the bank accounts by Respondent No.1 in exercise of powers u/s 226 (3) of the Act. Aggrieved by the order declining to stay the demand, the Petitioner has approached the Principal CIT by way of a petition, which is pending consideration. The said petition may now be disposed of expeditiously, in accordance with law. Writ petition is allowed in the above terms.
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