Petition withdrawn after agreement to cancel auction pending appeal. Hearing set for March 15.

The petition challenging the auction of attached properties without disposing of objections and appeal under the Income Tax Act was withdrawn after the Revenue agreed to cancel the auction and proceed with the auction only after the appeal is resolved by the Principal Commissioner of Income Tax. The petitioners will attend the hearing on 15th March, 2018, to make submissions in support of their appeal under Rule 86 Schedule II of the Act.

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Issues:
Challenge to auction of attached properties without disposing of objections and appeal under Income Tax Act.

Analysis:
The petition challenges the auction by the respondent Revenue of attached properties scheduled for 14th March, 2018, without disposing of the petitioner's objections and appeal. Initially, the petitioners filed a writ petition which led to an undertaking by the Revenue to pay the costs incurred for scheduling the auction. The auction was adjourned for two weeks to allow the Tax Recovery Officer to hear the petitioners' objections. The petitioners were to pay the costs by 5th March, 2018. Subsequently, the petition was withdrawn without examining its merits. The petitioners were heard by the Tax Recovery Officer on 1st March, 2018, where their objections were negatived. An appeal was filed under Rule 86 of the Income Tax Act, which is pending.

The respondent Revenue proceeded with the auction despite the pending appeal, leading to the filing of this petition. During the arguments, the Revenue agreed to cancel the auction scheduled for 14th March, 2018. It was decided that steps for auction would only be taken after the appeal is disposed of by the Principal Commissioner of Income Tax. The Principal Commissioner agreed to hear the petitioners on 15th March, 2018, regarding their appeal. Consequently, the petition seeking to challenge the auction was withdrawn by the petitioners.

In conclusion, the petition challenging the auction of attached properties without disposing of objections and appeal under the Income Tax Act was withdrawn after the Revenue agreed to cancel the auction and proceed with the auction only after the appeal is resolved by the Principal Commissioner of Income Tax. The petitioners will attend the hearing on 15th March, 2018, to make submissions in support of their appeal under Rule 86 Schedule II of the Act.

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