Stay of sale of attached tax properties refused despite pending Tribunal appeals, with limited protection for the residential flat.

A notified person under the Special Court (Trial of Offences Relating to Transactions in Securities) Act, 1992 sought stay of sale of attached properties pending income-tax appeals before the Tribunal. The Court held that confirmed assessments, pendency of further appeals, and absence of any stay of recovery did not justify postponing sale of the attached assets. The request for stay was rejected, but limited equitable protection was granted by directing that the residential flat be sold only after the other attached properties, if their proceeds were insufficient to satisfy the tax demand.

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Issues: Whether the appellant was entitled to stay of sale of attached properties pending disposal of the income-tax appeals before the Tribunal.

Analysis: The appellant was a notified person under the Special Court (Trial of Offences Relating to Transactions in Securities) Act, 1992, his properties stood attached, and there was an outstanding tax demand. The assessments had been confirmed in appeal, further appeals were pending before the Tribunal, and no stay of recovery had been granted. In these circumstances, the pending proceedings before the Tribunal did not justify postponement of sale. The Court, however, granted limited equitable relief by directing that the residential flat be proceeded against only after sale of the other attached properties if the sale proceeds were insufficient to satisfy the demand.

Conclusion: The prayer for stay of sale was rejected, with limited equitable protection granted regarding the residential flat.

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