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TMI Blog2019 (1) TMI 1085X X X X Extracts X X X X X X X X Extracts X X X X ..... ed sizeable tax demand against the Petitioner-Trust in relation to the Assessment for the Assessment Years 200910 to 201415. Petitioner-Trust has filed Appeals before the Income Tax Appellate Tribunal (for short "the Tribunal"), Pune against such Assessment and Appellate Orders. Pending such Appeals, Petitioner had also prayed for interim injunction against the recovery of the unpaid tax and interests before the Tribunal. Tribunal passed a detailed order on 10th November, 2017 and granted conditional stay against the recoveries. Operative part of the said order reads as under: "In the totality of the above said facts and circumstances, we are of the view that the applicant has prima facie case and balance of convenience for granting only p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... No. 13099 of 2017. In the said Petition, this Court noticed a misrepresentation of the Court's order by the President of the Petitioner-Trust and in connivance with the Income Tax Officer, the Trust had withdrawn sizeable amount from its bank accounts. The Division Bench of this Court, therefore, passed a detailed order on 5th January, 2018 dismissed the Petition on ground of such misdemeanor. The Court also initiated suo moto contempt proceedings against the President of the Petitioner-Trust and the concerned employee of the Income Tax Department. This Contempt Petition later on resulted into imposition of jail term against the contemptnors which was also confirmed by the Supreme Court. 5. Subsequent to these developments, Tribunal pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onal institutions and hospitals. On account of the tax dues and the coercive recovery initiated by the Department, the Petitioner-Trust finds it extremely difficult to run these institutions. He further submitted that in the different bank accounts, which are under the attachment of the Department, a sum of Rs. 18 Crores is already lying. He clarified that this includes a sum of Rs. 1,11,37,877/payable by the Government of India to the Petitioner-Trust, which also, the Income Tax Department has attached. The Department may be allowed to withdraw Rs. 18 Crores from such balance and upon which, Petitioner-Trust may be granted stay against further recoveries. 7. On the other hand, learned Counsel for the Department submitted that looking to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with interest. It would be open to and in fact, department has initiated coercive recovery. Whatever be the interim events, we cannot lose sight of the fact that the Tribunal in its order dated 10th November, 2017 had found prima facie case in favour of the Petitioner which persuaded the Tribunal to grant stay against and further recoveries on the condition of depositing Rs. 18 Crores. Not protecting the Petitioner-Trust at this stage, may have severe adverse effect on running its several educational and medical institutions, rendering the staff jobless and students without college. 10. We would, therefore, put the Petitioner-Trust back to the same position as on 10th November, 2017. The Tribunal had granted conditional stay to the Petit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the Management. If within this time suitable orders and directions are obtained by the petitioner-Management from the Bench, which is assigned cases under the direct tax laws, our order would take due note of the same and thereafter, further directions would be issued. In the event no clarifications/directions are obtained within this time, on the adjourned date, the court would be free to pass such orders as are permissible in law." 12. We leave it to the Petitioner-Trust to approach the Co6 ordinate Bench in such pending Petition for appropriate order with respect to such funds. 13. In view of the above facts, Petition is disposed of with the following directions: (i) Petitioner-Trust shall deposit in its bank account such amount as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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