{"id":4642,"date":"2012-04-05T05:19:23","date_gmt":"2012-04-05T05:19:23","guid":{"rendered":"http:\/\/itatonline.org\/archives\/?p=4642"},"modified":"2012-04-05T05:19:23","modified_gmt":"2012-04-05T05:19:23","slug":"rajasthani-sammelan-sarvoday-vs-adit-bombay-high-court-s-2206-ao-cautioned-to-follow-guidelines-for-recovery-of-tax","status":"publish","type":"post","link":"https:\/\/itatonline.org\/archives\/rajasthani-sammelan-sarvoday-vs-adit-bombay-high-court-s-2206-ao-cautioned-to-follow-guidelines-for-recovery-of-tax\/","title":{"rendered":"Rajasthani Sammelan Sarvoday vs. ADIT (Bombay High Court)"},"content":{"rendered":"\n\n
Click here to download the judgement (raj_sammelan_tax_recovery_guidelines.pdf) <\/strong> <\/a><\/p><\/td>\n<\/tr>\n<\/table>\n


\nS. 220(6): AO reminded that he is not mere “tax gatherer” & cautioned to follow guidelines for recovery of tax
\n<\/strong><\/p>\n

The assessee, a public charitable trust, filed a ROI returning Nil income. The AO passed a s. 143(3) assessment order holding that the assessee was not eligible for s. 11 exemption on the ground that the receipt of donations by it amounted to a commercial activity and assessed its total income at Rs. 3.51 crores. The assessee filed an application for stay u\/s 220(6). Without dealing with the stay application<\/em>, the AO directed the assessee to pay the demand within 3 days and threatened coercive proceedings<\/em> in the event of failure. The assessee filed an application before the DIT who directed it to pay 50% of the demand by March 2012 and the balance in installments. No reasons were given on why the stay application was not acceded to<\/em>. The assessee filed a Writ Petition to challenge the direction: HELD by the High Court:<\/p>\n

In the present case, as in several cases which have come up before this Court and particularly in the month of March, it is evident that the AO & DIT have both had scant regard<\/strong> to the parameters which have been laid down by this Court for disposal of stay applications in KEC International Ltd<\/strong> 251 ITR 158 & UTI Mutual Fund<\/a><\/strong>. No reasons<\/strong> are indicated. The orders do not contain<\/strong> a prima facie evaluation of the issues which would arise in appeal. In UTI Mutual Fund<\/a><\/strong>, this Court was constrained to issue a cautionary observation<\/strong> to the effect that AOs and Appellate Authorities, when they dispose of applications for stay, act as quasi judicial authorities and not merely as tax gatherers<\/strong> of the Revenue. While they have a duty of protecting the interests of the Revenue, they need to mitigate the hardship to the assessee and applications for stay must be considered objectively<\/strong>. The assessee does have serious issues<\/strong> to be urged before the CIT (A) and the AO & DIT ought to have granted a complete stay of demand u\/s 220(6)<\/p><\/blockquote>\n

. <\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

In the present case, as in several cases which have come up before this Court and particularly in the month of March, it is evident that the AO & DIT have both had scant regard<\/strong> to the parameters which have been laid down by this Court for disposal of stay applications in KEC International Ltd<\/strong> 251 ITR 158 & UTI Mutual Fund<\/a><\/strong>. No reasons<\/strong> are indicated. The orders do not contain<\/strong> a prima facie evaluation of the issues which would arise in appeal. In UTI Mutual Fund<\/a><\/strong>, this Court was constrained to issue a cautionary observation<\/strong> to the effect that AOs and Appellate Authorities, when they dispose of applications for stay, act as quasi judicial authorities and not merely as tax gatherers<\/strong> of the Revenue. While they have a duty of protecting the interests of the Revenue, they need to mitigate the hardship to the assessee and applications for stay must be considered objectively<\/strong>. The assessee does have serious issues<\/strong> to be urged before the CIT (A) and the AO & DIT ought to have granted a complete stay of demand u\/s 220(6)<\/p>\n

Read more ›<\/a><\/div>\n

<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[4,5],"tags":[],"class_list":["post-4642","post","type-post","status-publish","format-standard","hentry","category-all-judgements","category-high-court"],"acf":[],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/posts\/4642","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/comments?post=4642"}],"version-history":[{"count":0,"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/posts\/4642\/revisions"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/media?parent=4642"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/categories?post=4642"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/tags?post=4642"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}