Conditional release of fixed-deposit liens protects revenue through payment security and asset-preservation undertakings during tax-demand disputes.

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Full Text of the Document

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....Conditional release of a lien over provisionally attached fixed deposits can be granted where the outstanding revenue demand is adequately secured. A 20% deposit ordinarily supports a stay during appeal under the applicable CBDT circular; a 25% deposit, through a post-dated cheque, together with an undertaking not to transfer assets or create third-party rights, secured release of the lien. The Assessing Officer was required to lift the lien or recall the attachment and notify the bank once those conditions were met.....