In Brief
Maharashtra Industrial Development Corporation, a statutory body, challenged the Income Tax Commissioner's direction requiring deposit of 15% of a disputed tax demand and the consequent attachment of its bank accounts. The High Court dismissed its writ petition. The Supreme Court allowed the appeal in part, finding that while the tax dispute remained pending before the appellate authority, substantial financial coercion on a government undertaking was unjustified. The Court directed: withdrawal of approximately Rs. 400 crores already attached; keeping Rs. 1,000 crores in fixed deposits as security; expedited appellate decision within one month; and prohibition of further coercive action pending appeal.
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