IN THE HIGH COURT OF JUDICATURE AT BOMBAY IN THE HIGH COURT OF JUDICATURE AT BOMBAY IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORDINARY ORDINARY ORIGINAL CIVIL JURISDICTION ORIGINAL CIVIL JURISDICTION ORIGINAL CIVIL JURISDICTION WRIT PETITON NO.767 OF 2008 WRIT PETITON NO.767 OF 2008 WRIT PETITON NO.767 OF 2008 AND AND AND WRIT PETITON NO.768 OF 2008 WRIT PETITON NO.768 OF 2008 WRIT PETITON NO.768 OF 2008 Proctor & Gamble Hygiene & Health Care Ltd. ..Petitioners. V/s. Deputy Commissioner of Income Tax & Ors...Respondents. Mr.S.E.Dastur, senior Advocate with Sanjiv M. Shah for petitioners in both the petitions. Mr.P.S.Sahadevan for Union of India in both the petitions. CORAM : DR. S.RADHAKRISHNAN AND CORAM : DR. S.RADHAKRISHNAN AND CORAM : DR. S.RADHAKRISHNAN AND J.P.DEVADHAR, JJ. J.P.DEVADHAR, JJ. J.P.DEVADHAR, JJ. DATED : 1ST APRIL, 2008. DATED : 1ST APRIL, 2008. DATED : 1ST APRIL, 2008. P.C. :- P.C. :- P.C. :- 1. Heard learned senior Advocate for the petitioners and learned Advocate for the respondents. Rule. Rule made returnable forthwith. 2. Learned counsel for the respondents waive service. By consent of the parties, petition is taken up for final hearing. 3. Writ Petition No.767 of 2008 pertains to the A.Y. 2003-04 and Writ Petition No.768 of 2008 pertains - = : 2 : = - to the A.Y. 2004-05. 3. By this petition, the petitioners are challenging the common order dated 27th March, 2008 whereby the Commissioner of Income Tax-7, Mumbai has directed the petitioners to pay an amount of Rs.13.50 crores by 28th March, 2008 during the pendency of the appeals before the Commissioner of Income Tax (Appeal). 4. Learned senior counsel Shri Dastur pointed out the above demand has been made with regard to the assessment years 2003-04 and 2004-05 and brought to our notice a letter dated 21/2/2007 whereby the petitioners were directed to deposit a sum of Rs.5 crores on or before 25th March, 2007 with regard to the aforesaid appeals. It appears that the petitioners have already deposited the said sum of Rs.5 crores. Subject to the said condition, the stay was granted upto 31st December, 2007. However, the appeals have not been finally heard and disposed of. On 5th December, 2007 the petitioners received a letter from Deputy Commissioner of Income Tax, Circle 7(1), Mumbai directing the petitioners to deposit atleast 50% of the demand, otherwise the stay would be vacated. The petitioners thereafter made a representation on 11th December, 2007 against the said order. By his letter dated 12th February, 2008 the Tax Recovery Officer, - = : 3 : = - Range 7(1), Mumbai demanded the tax dues. The petitioners thereafter again made a representation on 20th February, 2008 before the Additional Commissioner of Income Tax 7(1). Finally, the impugned order dated 27/3/2008 was passed by the Commissioner of Income-tax-7 directing the petitioners to deposit Rs.13.50 crores by 28th March, 2008 with regard to the appeals pertaining to the assessments years 2003-04 and 2004-05 It appears that on 29/03/2008 two bank accounts operated by the petitioners have been attached. 5. Having regard to the aforesaid facts and circumstances of the matter, it appears that the petitioners were granted stay subject to the deposit of Rs.5 crores by order dated 21/2/2007 upto 31st December, 2007 whereby the above appeals were to be disposed of. However, a fresh demand was made on 5th December, 2007 even when the stay was granted pursuant to the order dated 21/2/2007 and continued till 31st December, 2007. Although the appeal before the Commissioner of Income Tax (A) has been heard on several occasions, the same is not finally disposed off. There is no dispute that the petitioners have co-operated in the matter. Having regard to the aforesaid facts and circumstances of the case, we are inclined to quash and set aside the order dated 27th March, 2008 and grant stay of recovery subject to the - = : 4 : = - petitioners depositing an amount of Rs.7 crores on or before 15th April, 2008. The Commissioner of Income Tax (A) shall dispose of the appeals as expeditiously as possible. 6. The respondents shall lift the attachment of the two Bank accounts of the petitioners one with City Bank and other with the Deutsche Bank forthwith. The petitioners undertake to deposit the aforesaid amount of Rs.7 crores in the government treasury positively on or before 15/4/2008. The undertaking is accepted. 7. It is made clear that if the aforesaid deposit is not made by 15th April, 2008, the accounts in the above mentioned banks shall stand attached immediately without further notice to this Court. 8. In the event the order is adverse to the petitioners, the same shall not be operated for period of 6 weeks from the date of communication of the said order to the petitioners. 9. Rule is made absolute in the above terms. 10. Both the Writ Petition are disposed of with no order as to costs. - = : 5 : = - (DR.S.RADHAKRISHNAN, J.) (DR.S.RADHAKRISHNAN, J.) (DR.S.RADHAKRISHNAN, J.) (J.P. DEVADHAR, J.) (J.P. DEVADHAR, J.) (J.P. DEVADHAR, J.)