ASHOK CHAWLA Vs. DIRECTOR OF INCOME TAX (INVESTIGATION)

JUDGEMENT

(1.) THIS application has been filed by the petitioner seeking interim directions with regard to release of certain properties from the restraint orders as well as the attachment orders. The properties which are under restraint orders/attachment orders are :

(2.) IT is stated by the learned counsel for the petitioner that the Panchsheel Park property does not belong to the petitioner. The learned counsel for the petitioner submits that according to the Revenue., the tax recoverable, amounts to approximately Rs. 14.11 crores towards Income -tax dues and approximately Rs. 3.34 1akhs towards wealth -tax dues. He submits that the attachment of all these properties is disproportionate to the amount of tax that is recoverable from the petitioner. In order to put an end to the entire dispute, the learned counsel for the petitioner submitted that the petitioner is willing to offer the properties at Janpath and the farm land at Gawal Pahari for auction so as to recover the tax dues from the sale proceeds therefrom. He submits that although there is a dispute with regard to the extent of the tax that is due to the Department, for the time being, taking the Revenue's calculations, the sale proceeds of these two properties would be far in excess of the amount due to the Department even as per their calculations. He says so because according to him, the sale proceeds of these two properties would be far in excess of Rs. 15 crores. In addition, the learned counsel for the petitioner submits that the restraint order/attachment may be continued in respect of the Saket property. The Janpath property, the Saket property and the farm land at Gawal Pahari are unencumbered as stated by the learned counsel for the petitioner upon instructions from Mr. Ashok Chawla, the Petn. No. 1, who is present in Court.

(3.) WE have heard the learned counsel for the petitioner as well as the learned counsel for the respondent and we feel that the offer made by the petitioner is reasonable inasmuch as the properties at Janpath and Gawal Pahari are expected to be sold for more than Rs. 15 crores. As a stand -by the property at Saket is also offered for retention of the attachment orders. We feel that the restraint orders/attachment orders in respect of the rest of the properties can be lifted without any adverse effect On the aspect of collection of tax from the petitioner.