Court allows petitioner to offer properties as security for tax demand, pending approval to lift attachment.

The court allowed the petitioner to offer properties worth more than Rs. 9.33 crores as security for a tax demand of Rs. 9,33,16,434, with a provision to deposit cash as security. The petitioner was granted permission to present unencumbered properties to the Principal Commissioner, Income Tax, Chennai, for assessment. If approved, the attachment on other properties would be lifted, enabling the petitioner to liquidate assets to meet the tax obligation. Further proceedings were scheduled for April 9, 2019, to monitor case progress.

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Issues involved:
1. Assessment of tax demand and attached properties
2. Permission to offer security for tax demand
3. Lifting of attachment on properties

Analysis:

1. Assessment of tax demand and attached properties:
The petitioner's counsel highlighted the tax demand of Rs. 9,33,16,434 disclosed in the counter affidavit, with properties valued at over Rs. 40 crores under attachment. The court acknowledged this and allowed the petitioner to appear before the Principal Commissioner, Income Tax, Chennai with documentation on properties worth more than Rs. 9.33 crores that could be offered as security and were unencumbered. The petitioner was also permitted to deposit a suitable amount in cash as security.

2. Permission to offer security for tax demand:
The court granted permission for the petitioner to present himself before the Principal Commissioner, Income Tax, Chennai, with details of properties that could serve as security for the tax demand. The petitioner was required to demonstrate that the properties were free from any encumbrances and offer a cash deposit as security. If the Principal Commissioner was satisfied with the provided information, the attachment on other properties could be lifted, allowing the petitioner to liquidate assets and fulfill the payment as per the High Court's order.

3. Lifting of attachment on properties:
In case the Principal Commissioner, Income Tax, Chennai was content with the security offered by the petitioner, the court directed the lifting of attachment on other properties. This would enable the petitioner to utilize the unattached properties to raise funds for settling the tax demand as per the directives of the High Court. The court scheduled a further hearing on the matter for April 9, 2019, indicating a follow-up on the progress of the case.

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