Conditional restraint on auction of attached property granted subject to tax deposits, bank guarantee, and continued attachment until clearance.

The proposed auction of the attached property was restrained conditionally pending disposal of the interest-waiver applications. Protection against sale was made subject to deposit of the admitted tax dues after crediting post-proclamation payments, payment of specified wealth-tax dues, and furnishing of a bank guarantee for the balance demand. The authority was directed to decide the pending waiver applications within two months of receiving a certified copy of the order, and the attachment was to continue until full clearance of the dues.

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Issues: Whether the proposed auction of the petitioner's attached property could be restrained pending disposal of the applications for waiver of interest, and whether the sale should be kept in abeyance subject to payment of the admitted tax dues, furnishing of security for the remaining demand, and continued attachment till clearance of the dues.

Analysis: The relief was granted on a conditional basis. The petitioner was required to deposit the outstanding income-tax dues after giving credit for payments made after the sale proclamation, deposit the specified wealth-tax demands for certain assessment years, and furnish a bank guarantee for the remaining wealth-tax demand. The authority was also directed to dispose of the pending interest-waiver applications within two months of production of a certified copy of the order. At the same time, the attachment was allowed to continue until the dues were fully cleared.

Conclusion: The proposed sale was restrained conditionally, with the petitioner obtaining protection against auction subject to compliance with the stipulated deposits and bank guarantee, while the attachment remained in force.

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