The Tax Publishers2020 TaxPub(DT) 1243 (SC)

INCOME TAX ACT, 1961

Section 261

Where the assessee preferred SLP to appeal against the judgment of Gujarat High Court in Gauravbhai Hargovindbhai Dave v. TRO-4 [R/Special Civil Application No. 3661 of 2020, dt. 10-2-2020] : 2020 TaxPub(DT) 1133 (Guj-HC), Whereby the High Court, held that it was too late in the day for writ-applicants to redress any grievance of any nature having not challenged the order passed under section 179 and having permitted the order to attain finality. it was not appropriate for court to disturb entire auction proceedings undertaken by department. Therefore, when order passed under section 179 has attained finality and was implemented with auction of the immovable properties, no interference was called for at that belated stage, the Supreme Court issued notice in the petition. The principal tax due (in respect of the auction of these nine properties) being Rs. 1.33 crores, the court directed that Gulati's client deposits the same within three weeks from today with the Registry of this Court which amount shall be invested in short-term fixed deposit of a Nationalised Bank. In the meanwhile, auction sales that have been made not to be confirmed.

Appeal (Supreme Court - Special leave petition - Liability in special cases - Proceedings against directors of private company--Auction of immovable properties

Assessee preferred SLP to appeal against the judgment of Gujarat High Court in Gauravbhai Hargovindbhai Dave v. TRO-4 [R/Special Civil Application No. 3661 of 2020, dt. 10-2-2020] : 2020 TaxPub(DT) 1133 (Guj-HC), Whereby the High Court, held that it was too late in the day for writ-applicants to redress any grievance of any nature having not challenged the order passed under section 179 and having permitted the order to attain finality. it was not appropriate for court to disturb entire auction proceedings undertaken by department. Therefore, when order passed under section 179 has attained finality and was implemented with auction of the immovable properties, no interference was called for at that belated stage.Held:The Supreme Court issued notice in the petition. The principal tax due (in respect of the auction of these nine properties) being Rs. 1.33 crores, the court directed that Gulati's client deposits the same within three weeks from today with the Registry of this Court which amount shall be invested in short-term fixed deposit of a Nationalised Bank. In the meanwhile, auction sales that have been made not to be confirmed.

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