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2024 (1) TMI 166 - MADRAS HIGH COURTStay of demand - seeking permission for removal of attachments placed on the petitioner's bank accounts in relation to the outstanding demand - since around 30% of the tax liability has already been collected from the petitioner, a stay application was filed by the petitioner to lift the attachment order on 10.02.2022 and the same has not been disposed of by the respondent till date - HELD THAT:- Department had already collected around 30% of the tax liability. In terms of the provisions of the Act, if 20% of the tax liability is paid to the Department, the Assessee will be automatically entitled for stay of recovery proceedings, which were initiated against him. When such being the case, since the petitioner had remitted around a sum of Rs. 62,00,000/-, which comes around 30% of the tax liability, the continuation of bank attachment will prejudicially affect the interest of the petitioner. Hence, this Court is inclined to lift the bank attachment issued against the petitioner. Accordingly, the bank attachment issued by the respondent stands lifted. Further, the respondent is directed to dispose of the stay application filed by the petitioner by taking into consideration of the payment of 30% of the tax liability made by the petitioner. The impugned order was passed by the respondent on 30.11.2023, in which case, the time limit for filing appeal is not expired. Hence, if the petitioner preferred to file the appeal, this Court does not find any impediment for the appellate Authority to entertain the said appeal since the petitioner had already paid 30% of the tax liability. The respondent-bank is directed to permit the petitioner to operate their accounts upon production of this order copy.
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