Income Tax Rules, 1982----

----Rr.117 & 165---Income Tax Ordinance (XXXIX of 1979), S. 134-- Application for grant of stay of recovery proceedings---Department had attached properties of the assessee and had frozen its bank account ---Assessee undertook not to dispose of his properties which had already been attached by the department and prayed that till the disposal of its appeal the department may be restrained from auctioning the properties, arresting the assessee and its bank account may be released so that it may continue with the business by taking overdraft from the bank---Income Tax Appellate Tribunal while disposing of the application for stay directed that the properties attached by the department should continue to be attached but should not be auctioned or sold till the disposal of appeals; assessee should not be arrested and the bank account of assessee should stand released so that the assessee might continue with its business activities.

M. Farogh Nasim for Applicant.

Ali Nasir Bukhari, D.R. for Respondent.

Date of hearing: 18th January, 1994.

ORDER

MUHAMMAD MUJIBULLAH SIDDIQUI (JUDICIAL MEMBER).--By above application the applicant has sought stay of recovery of proceedings.

2. Heard Mr. Muhammad Farogh Nasim, learned counsel for the applicant and Mr. Ali Nasir Bukhari, learned representative for the Department. Mr. Farogh Nasim has submitted that a total demand of Rs.17,34,915 was created in the assessment year 1986-87 out of which there is an outstanding demand of Rs.05,97,954 while in the assessment year 1988-89 the total demand was created at Rs.10;95,329 out of which the demand outstanding at present is Rs.8,49,685. He has submitted that the department has attached three properties of the applicant as follows:

(1) Residential House No. 26/C, Block-6, Federal-B, Area, Karachi.

(2) House at Katchi Gali No.3.

(3) Godown at Britto Road, Karachi.

3. Mr. Farogh Nasim has further submitted that in addition to the attachment of properties as above the department has issued show cause notice as to why the applicant should not be committed to civil prison. The department has further freezed bank account of the applicant with the Habib Bank Ltd. Napier Road Branch, Karachi. Mr. Farogh Nasim has submitted that the applicant undertakes not to dispose of his three properties which have already been attached by the department and, therefore, till the disposal of appeal the department may be restrained from auctioning the properties, arresting the applicant and the bank account may be released so that the applicant may continue with the business by taking overdraft from the bank. The request made by the learned counsel for the applicant appears to be reasonable and, therefore, it is directed that the three properties attached by the department shall continue to be attached but the properties shall not be auctioned or sold till the disposal of appeals. The applicant shall not be arrested and the bank account of the applicant with the Habib Bank Limited. Napier Road, Branch, Karachi shall stand released so that the applicant may continue with his business activities.

4. The stay applications stand disposed of as above.

M.B.A./18/T.TOrder accordingly.