Provisional Attachment Dispute Over Satisfied Tax Demand Set for Review; Corrective Measures Under Consideration.

The HC examined a provisional attachment order issued without an outstanding tax demand. The petitioner contended that the tax demand, upheld in the first appeal by the Tribunal, was satisfied, yet a new provisional attachment was imposed. The HC granted the respondent three weeks to verify the petitioner's claim and take corrective measures if accurate. The case is set for review on 18th April 2024 for further proceedings.

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Issues involved: Provisional attachment order without outstanding tax demand.

Summary:

The High Court addressed the issue of a provisional attachment order issued without any outstanding tax demand. The petitioner argued that the demand of tax, as sustained in the first appeal proceedings by the Tribunal, had been satisfied, and there was no outstanding demand at present. However, the earlier provisional attachment had not been lifted, and a fresh provisional attachment order was issued by the respondents despite no existing outstanding tax demand.

The Court granted three weeks to the respondent to obtain instructions. If the factual assertion made by the petitioner's counsel was found to be true, corrective steps were to be taken in the meantime. The case was scheduled to be reviewed on 18th April, 2024, for further proceedings.

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