ASHOK CHAWLA Vs. UNION OF INDIA

JUDGEMENT

(1.) THIS is an application filed by the petitioners seeking restraint on the sale of the petitioners' properties which is proposed to be held on 10th June, 1998 (Annexure A with the application). It submitted by the learned counsel for the petitioners that as against the order of assessment, the petitioners have filed an appeal before the Tribunal; so far s challenge to the proceedings under section 132 of the Income-tax Act, 1961 ('the Act') is concerned, the same is before this Court.

(2.) OPPOSING the prayer for ad interim relied, the learned senior standing counsel for the department has invited attention of the Court to the fact stated in para 5 of the order of the act of the Tribunal dt. 16th June, 1997 (Annexure D), wherein the Tribunal has noted the fact of the petitioners themselves having offered the properties for sale, which has been kept in view as a relevant factor by the Tribunal while passing the order of stay dt. 16th June, 1997.

(3.) WE are of the opinion that the petitioners' interest deserves to be protected so long as the question of jurisdiction as to whether it is the Tribunal or this Court which is competent to entertain the challenge laid to the proceedings under S. 132 is not decided. If the sale is allowed to be held during the pendency of the proceedings before this Court, the situation could become irreversible in the event of success of the petitioners.