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Judgment
Mr. Mittal, learned senior counsel appearing for the petitioners submitted that on assessment, the Income Tax Department has raised a demand of Rs. 2.70 crores against the petitioners on account of tax and penalty against which, appeals were filed far back as on 01/02/2010. In those appeals, stay petitions were also filed but due to no availability of Appellate Authority, the appeals/ interim petitions could not be disposed of as yet. He further submitted that an order of attachment was passed on 11/03/2011. However, it was withdrawn on 29/03/2011. Thereafter, when the new Officer joined, he passed a fresh order of attachment on 14/03/2011 and has issued notices to the concerned banks. He lastly, submitted that out of the said demand a sum of about Rs. 1.65 crores has already been paid.
Mr. Deepak Roshan, learned counsel appearing for the respondents Income Tax, submitted that this case can be disposed of in terms of the order 27/11/2011, passed in W.P. (T) No. 5897/2011 with a direction to withdraw the order of attachment on furnishing bank guarantee and personal guarantee for the balance amount.
When we asked Mr. Roshan regarding nonfunctioning of the Appellate Authority, he submitted that the matter is in process, but he cannot say as to by what time the Appellate Authority will become functional.
If the Appellate Authority is not functioning for such a long time, this is a serious matter. It is in nobody''s interest..
In the circumstances, the respondents are directed to withdraw the order of attachment of the bank accounts of the petitioners on their jointly furnishing the bank guarantee of Rs. 50 lacs, which shall be kept renewed from time to time till all the 38 appeals, interim petitions, pending before the Income Tax Appellate Authority, are decided. Petitioners will also jointly furnish personal guarantee of Rs. 50 lacs.
When it has come to our notice that the Income Tax Appellate Authority is not functioning for such a long time, we feel inclined to direct the concerned authorities to see that the Appellate Authority is made functional as early as possible and preferably by March 2012.
It is expected that after the Appellate Authority become functional, it will dispose of the pending matters expeditiously.
With these observations and directions, this writ petition stands disposed of.
Let a copy of this order be handed over to Mr. Deepak Roshan, as prayed.