Court orders partial payment to stop house sale; full payment releases property from attachment

The Court directed the petitioner to deposit 50% of the disputed demand within two weeks and the remaining amount within six weeks to stay the sale of their residential house. Failure to comply would result in dismissal of the petition and allow authorities to recover the amount with interest. Once the full payment is made, the residential property would be released from attachment. The Court disposed of the petition without costs and ordered the respondents to be promptly informed of the decision.

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Issues:
1. Challenge to demand of Income Tax for Assessment Year 2012-13.
2. Proclamation of sale of residential house by Tax Recovery Officer under the Income Tax Act, 1961.
3. Petitioner's request to deposit 50% of the demand to stay the sale.

Analysis:
1. The petitioner did not challenge the demand of Income Tax for the Assessment Year 2012-13. However, a proclamation of sale of the petitioner's residential house was issued by the Tax Recovery Officer under Sections 222 and 223 of the Income Tax Act, 1961, to recover a sum of Rs. 1,46,58,192. The petitioner offered to deposit 50% of the demand within two weeks and the remaining 50% within six weeks to seek indulgence from the Court under Article 226 of the Constitution of India to stay the sale.

2. The Court acknowledged that the demand was not under challenge, and the petitioner should have paid it on time. Despite this, considering the imminent sale of the residential house by the Income Tax Department and the property's market value exceeding the demand, the Court directed that if the petitioner deposits 50% of the disputed demand (Rs. 75.00 lakhs) within two weeks and the remaining amount within six weeks, the auction of the residential house located in Bangalore may not proceed.

3. The Court specified certain conditions: i) No extension of time for deposit shall be allowed; ii) Failure to deposit the entire amount within the stipulated timeframe will result in the dismissal of the writ petition, allowing authorities to recover the amount with further interest; iii) Upon full payment, the Tax Recovery Officer Assessing Authority shall release the residential property from attachment as per the law.

4. The Court disposed of the writ petition with the mentioned conditions and observations, emphasizing that no costs were to be incurred. A copy of the order was directed to be sent to the Respondents promptly for compliance.

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