Appeal modifies excessive order setting aside demand notice & attachment, grants limited protection pending Tribunal decision.

The Revenue challenged an order setting aside a notice of demand in a writ appeal. The Judge's decision to entirely set aside the demand notice and attachment order was deemed excessive. The appeal was allowed, modifying the order to provide limited protection against coercive action until the Income Tax Appellate Tribunal decided on the stay petition within two weeks.

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Issues:
Challenge to order setting aside a notice of demand in a writ appeal.

Analysis:
The case involved a writ appeal where the Revenue challenged an order setting aside a notice of demand issued by the Income Tax Officer. The respondent had filed a writ petition seeking protection from the demand until the disposal of an appeal before the Commissioner of Income Tax (Appeals). The learned Judge granted relief beyond what was sought by the respondent, setting aside the notice of demand entirely, causing dissatisfaction to the Revenue.

The respondent's prayer in the writ petition was to keep the notice of demand in abeyance until the appeal was decided, and to lift a pre-assessment order of attachment. However, the Judge's order set aside the demand notice and the attachment order, directing the appellate authority to decide the appeal within eight weeks. The Revenue appealed the decision, arguing that the relief granted was excessive.

Despite the Judge's order, the appellants proceeded to dispose of the appeal against the assessee. Consequently, the writ appeal was allowed, modifying the Judge's order to provide limited protection against coercive action only until the disposal of the stay petition by the Income Tax Appellate Tribunal. The Tribunal was directed to decide on the stay petition within two weeks, and the related motion was closed without costs.

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