TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
When case Id is present, search is done only for this
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>Supreme Court affirms Special Court's decision on income tax liability before fund distribution. Bank's withdrawal applications dismissed.</h1> <h3>Standard Chartered Bank Versus Asstt. Commr. of Income Tax, Bombay & Ors.</h3> Standard Chartered Bank Versus Asstt. Commr. of Income Tax, Bombay & Ors. - [2010] 99 SCL 333 (SC) Issues:Interim order of Special Court regarding distribution of diverted funds, permission to withdraw decretal amount, stay for CIT (A) to hear out Income Tax Appeal, direction for timely disposal of appeal.Interim Order of Special Court:The Standard Chartered Bank challenged an interim order of the Special Court at Mumbai regarding the distribution of funds diverted to the accounts of a broker. The Special Court decided to wait for the decision of the CIT (Appeals) on the broker's liability to income tax before distributing the funds. The Supreme Court upheld the Special Court's decision, stating that the appellant-Bank cannot withdraw the amount until the final adjudication by the CIT (A) is completed.Permission to Withdraw Decretal Amount:The heirs and legal representatives of the broker expressed their intention to file documents and argue the case within four months without seeking adjournments. Based on this commitment, the Supreme Court dismissed the Bank's applications seeking permission to withdraw the decretal amount from the custodian. The Court found no reason to pass any order on the applications in light of the heirs' stand.Stay for CIT (A) to Hear Out Income Tax Appeal:The Court noted that the CIT (A) who heard the appeal was under transfer and decided to allow him to stay for six months to dispose of the Income Tax Appeal. Both the Income Tax Authorities and legal representatives of the broker agreed to dispose of the appeal within four months without any unnecessary adjournments. The Court directed the CIT (A) to finalize the Income Tax Appeal within six months to avoid delays that a new incumbent might cause.Direction for Timely Disposal of Appeal:In order to prevent a denovo trial if a new incumbent takes over, the Court instructed the authorities not to replace the current CIT (A) until the final decision is made. The Court emphasized the importance of timely disposal of the pending appeal and directed all pending interlocutory applications to be disposed of in light of the given directions. No costs were awarded in this matter.
TaxTMI 
TaxTMI 
