The Tax Publishers2020 TaxPub(DT) 4777 (All-Trib)

INCOME TAX ACT, 1961

Section 220

Where assessee had already paid a sum of Rs. 43.18 Lakhs out of the disputed demand of Rs. 1.85 Crores for all these three years, after the part relief granted by CIT(A) and when assessee had already paid more than 20% of the disputed demand, then, assessee deserved protection against the coercive action for recovery of outstanding demand, therefore, AO was restrained to take any coercive action for recovery of balance outstanding demand for a period of three months or till the disposal of these three appeals, whichever was earlier.

Recovery - Stay of demand - Assessee already paid 20% of disputed demand -

By way of this stay application, assessee sought stay against the outstanding demand for three assessment years, i.e., assessment years 2005-06, 2006-07 and 2009-10, arising from the assessment orders passed under section 153A. Assessee submitted that after the relief granted by CIT(A), total disputed demand for three years was Rs. 1.85 Crores, however, the majority of demand was from the additions made by AO, without any incriminating material found or seized during the course of search and seizure action or post search enquiries, but all these items were already recorded in the books of account of assessee and assessment for the assessment years 2005-06 and 2006-07 were not pending on the date of search. Hence, when the assessment years for assessment years 2005-06 and 2006-07 were not got abated due to search and seizure action, then, addition made by AO without any incriminating material was not sustainable in law. Held: Assessee had already paid a sum of Rs. 43.18 Lakhs out of disputed demand of Rs. 1.85 Crores for all these three years, after the part relief granted by CIT(A). Therefore, the payment made as claimed by assessee after the assessment order was more than 20% of the disputed demand involved in these appeals. Since assessee had made out prima facie a good arguable case in these appeals and at least for the assessment years 2005-06 and 2006-07 therefore when assessee had already paid more than 20% of the disputed demand, then, assessee deserves protection against the coercive action for recovery of the outstanding demand. AO was restrained to take any coercive action for recovery of the balance outstanding demand for a period of three months or till the disposal of these three appeals, whichever was earlier.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2005-06, 2006-07 & 2009-10



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