Monday, 27 October 2014

No attachment proceedings for order passed u/s 201.



S. 220 : Collection and recovery - Assessee deemed in default-High Court directed CIT(A) to
dispose the appeal.[S. 201,201(IA)]
The assessee had filed an appeal before the CIT(A) against Order u/s. 201 and 201(1A) passed by the AO. During pendency of the appeal the AO issued communication to remit 50% of the demand and attached the bank accounts of the assessee.
The assessee filed a petition before the High Court inter-alia contending that it had pending refunds for A.Y.s 2012-13 and 2013-14 the assessment of which years were pending and that it would not press for refunds of the said amounts till the disposal of the appeal before the CIT(A) and hence no coercive action should be initiated. The High Court disposing the petition directed the department to lift the attached bank accounts of the assessee and directed the CIT(A) to dispose of the appeal on or before a particular date and also directed the assessee not to press for refunds till then. (AY. 2012-2013, 2013-2014)

Hosmat Hospital (P.) Ltd. .v. CIT (2014) 222 Taxman 71 (Mag.)(Karn.)(HC)

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