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| The Tax Publishers2020 TaxPub(DT) 1115 (Cal-HC) INCOME TAX ACT, 1961
Section 226(3)
Where assessee challenged validity of notice issued under section 226(3) to banks for recover amount due by contending that recovery notice could not precede demand, considering perversity in proceeding and that appeal was pending for disposal, stay against demand was granted subject to deposit of 20% of assessed amount.
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Recovery - Validity - Notice issued to banker of assessee to recover amount due -
Assessee challenged notice issued under section 226(3) of Income Tax Act, 1961. Notice was issued to banker of assessee on account of recovery of amount due and payable from assessee for relevant assessment year (2017-2018). Assessee contended that recovery notice could not precede the demand. Held: A prima facie case was made out by assessee with regard to error apparent on face of record and perversity in proceeding. It also appeared that an appeal against assessment order as also demand notice was preferred. Assessee was directed to pursue appeal by depositing 20% of assessed amount. Such appeal was to be disposed of within stipulated period. Till disposal of same, demand notice as also notices issued under section 226(3) to banks were stayed and same will be subject to result of appeal.
REFERRED :
FAVOUR : In assessee's favour
A.Y. :
IN THE CALCUTTA HIGH COURT
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