Provisional attachment relief balanced business continuity with revenue protection through asset restraints and controlled banking operations.

Interim modification of a provisional attachment under income-tax law was granted to balance business continuity with revenue protection. Recognising that the petitioner was an operating company, the Court allowed normal banking operations and receipt of debts, receivables, loans and advances into designated bank accounts, while requiring monthly reporting and continuation of instalment payments. To secure possible tax recovery, it restrained transfer or alienation of immovable assets, fixed assets, movable plant and machinery, and dividend remittances abroad, and required prior intimation before any repatriation of funds. The relief was therefore granted in modified form subject to protective conditions.

---

---

Issues: Whether the provisional attachment order under the income-tax law warranted interim modification so as to permit the petitioner to continue normal business operations pending further hearing.

Analysis: The petitioner was shown to be an operating and running company, and the Court balanced that position against the revenue's apprehension of protecting possible tax recovery. To preserve business continuity while safeguarding the revenue, the Court imposed interim restraints on transfer or alienation of immovable assets, fixed assets, movable plant and machinery, and dividend remittances abroad, while permitting receipt of debts, receivables, loans and advances into designated bank accounts and allowing ordinary operation of bank accounts with monthly reporting. The petitioner was also required to give prior intimation before any repatriation of money abroad, and the existing instalment payments were directed to continue.

Conclusion: Interim relief was granted in modified form in favour of the petitioner, subject to protective conditions designed to secure the revenue's interests.

---