Hearing a petition filed by Coca-Cola, Justice V C Daga and Justice J P Deodhar, allowed the soft drink major to deposit the amount in instalments by December.
The Income Tax authorities had claimed dues of Rs 77 crore from Coca-Cola towards ads and promotional expenses incurred by the company during assessment year 2002-2003. The amount also included an interest amount of Rs 22.3 crore (Rs 223 million).
As the soft drink major failed to pay the amount, its accounts with Citibank, Bank of Maharashtra and ABN Amro Bank and ICICI Bank were attached by the income tax authorities after the assessment officer rejected Coca-Cola's plea for a stay on recovery.
Coca-Cola also moved the Income Tax Tribunal seeking a stay and the matter is pending. As it attached bank accounts of the soft drink major, the company moved the High Court seeking a stay on recovery procedures.
Coca-Cola counsel Soli Dastur argued that IT department had acted in haste while attaching the he occasion.
When contacted for comments on the Bombay High Court ruling, Coca Cola India spokesperson said the company was "awaiting formal receipt of the High Court's order".
The spokesperson said the legal representative of the company had "advised that the division bench ordered the bank account attachments be revoked immediately."
"The High Court order separately requests a deposit of Rs 10 crore (Rs 100 million) in three instalments while the related appeal remains pending," the spokesperson said.