INCOME TAX ACT, 1961

Section 220

Recovery - Stay of demand - Substantial amount already recovered through garnishee proceedings while appeal was pending for disposal -

During pendency of appeal, assessee approached competent authority under section 220(6) for a stay of recovery pending disposal of appeal. Assessee was granted stay of recovery of amounts confirmed by assessment order, on condition that assessee paid an amount equal to 20% of tax demand. Held: Revenue already recovered an amount of Rs. 1,51,00,357 from assessee through garnishee proceedings, and appeal preferred by assessee against assessment order was heard finally by Appellate Authority, who was expected to pass orders in appeal in the near future, there need not be a further recovery effected from assessee. Accordingly, while upholding recovery already effected by revenue for time being, it was deemed sufficient for safeguarding interests of revenue pending disposal of appeal. Writ petition was disposed by directing revenue to lift attachment over bank accounts of assessee, with a further direction to appellate authority to pass final orders in appeal within stipulated time.

REFERRED :

FAVOUR : Partly in assessee's favour

A.Y. :

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