Law:

Section:

Section 222 of Income-tax Act, 1961, read with rule 8 of Second Schedule to the Income-tax Act, 1961 - Collection and recovery of tax - Certificate proceedings - Immovable belonging to Petitioner assessee company were attached against income-tax demands outstanding against it - Some shares beloning to petitioner were kept as security with respondent No. 3 - Petitioner had let out its business premises to respondent No. 4 for specified period after obtaining permission from TRO - However, after said specied period TRO granted further extension of eave but without consent of petitioner - For amount of dues outstanding towards income tax, petitioner filed petition for auction of attached property except to sell shares which were given by way of security - Department, however, did not take any action in that behalf - Whether after making attachment, proceedings should be taken for sale of property within reasonable time. - Held, yes - Whether, therefore, petitioner was entitled to direction to TRO to proceed to sell attached properties for realizations of outstanding liability - Held, yes - Whether shares allegedly attached could not be sold since they were given by way of security only and were never attached by department in realization of disputed liabilities - Held, yes FACTS The petitioner company had suffered heavy losses as a result of which it could not pay certain Income-tax dues. The respondent No. 2, TRO, attached the land and building including fixed assets together with business premises. Subsequently, the petitioner executed a lease deed in favour of respondent No. 4 in respect of its business premises including plant, machinery, etc., with the permission of TRO. After the expiry of said period of eight months, the TRO approved the extension of leave for two years but the approval of petitioner was not obtained. The petitioned field the instant petition directing the respondents to sell the attached property towards the satisfaction of arrears of Income-tax dues after evicting the third petition; to issue an order or direction in the nature of mandamus directing the respondents not to accept any payment from towards arrears of income-tax dues…

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