Tax appeal and bank attachment: conditional vacation allowed if 25% deposit and appeal filed, else recovery proceeds.

Rectification under tax law and an assessment notice led to an attachment of the taxpayer's bank account; the court permitted conditional vacation of the attachment if the taxpayer files the statutory appeal and deposits 25% of the disputed tax and has no other tax arrears. The appellate authority is permitted to decide the appeal on merits even if limitation would otherwise be an issue. Failure to comply with the deposit or arrears condition authorizes revenue to resume recovery as if the writ were dismissed. The writ petition was disposed on these conditional terms.

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Issues: (i) Whether liberty should be granted to file a statutory appeal against an assessment order and whether interim relief in the form of lifting bank attachment can be granted subject to conditions.

Analysis: The petition challenges an assessment order passed under Section 73 and notices under Section 50(1) and seeks rectification under Section 161 which was rejected. The petition is disposed at the admission stage by consent. Following established practice in similar matters, relief pending appeal is conditioned on the petitioner depositing a portion of the disputed tax to balance the competing interests of revenue protection and the availability of appellate remedy. The appellate authority is permitted to decide the appeal on merits without reference to limitation if the appeal is filed within the stipulated time. Compliance with the deposit requirement is linked to automatic vacation of the bank attachment, and failure to comply permits recovery action as if the petition were dismissed.

Conclusion: Liberty is granted to file a statutory appeal subject to depositing 25% of the disputed tax within thirty days; upon compliance the appellate authority may decide the appeal on merits without limitation reference and the bank attachment shall stand vacated; failure to comply permits the respondent to proceed with recovery as if the petition were dismissed.

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