S. 226 : Collection and recovery-Stay of demand-Pendency of appeal before CIT(A)-CBDT Circular-No statutory requirement of pre-deposit under the Act-Direction to deposit 20% of disputed demand based solely on CBDT Office Memorandum dated 31-7-2017-Executive instructions cannot override or impose conditions contrary to statute-Where serious prejudice likely and case treated as non-priority by Department, exemption from pre-deposit ought to be granted-Order rejecting stay set aside and recovery and penalty proceedings stayed [S. 119, 246A, 250, 271F, 274; Art. 226]

S. 226 : Collection and recovery-Stay of demand-Pendency of appeal before CIT(A)-CBDT Circular-No statutory requirement of pre-deposit under the Act-Direction to deposit 20% of disputed demand based solely on CBDT Office Memorandum dated 31-7-2017-Executive instructions cannot override or impose conditions contrary to statute-Where serious prejudice likely and case treated as non-priority by Department, exemption from pre-deposit ought to be granted-Order rejecting stay set aside and recovery and penalty proceedings stayed by High Court-SLP of revenue dismissed.[S. 119, 246A, 250, 271F, 274; Art.136]

S. 221 : Collection and recovery-Penalty-Tax in default-Return filed in wrong form-Writ petition dismissed-Granted liberty to file application for rectification with direction to Department to consider permitting assessee to file return of income in appropriate form-SLP of assessee dismissed. [S. 139(4A), 154, 221(1), Art. 136]

S. 221 : Collection and recovery-Penalty-Tax in default-Return filed in wrong form-Writ petition dismissed-Granted liberty to file application for rectification with direction to Department to consider permitting assessee to file return of income in appropriate form. [S. 139(4A), 154, 221(1), Art. 226]

S.206AA: Requirement to furnish Permanent Account Number-Deduction of tax at source-Immoveable property-Where purchasers deducted tax at source at 1% under section 194-IA on sale consideration and vendor had furnished PAN which was accepted by the Department’s portal, subsequent demand treating PAN as invalid and alleging short deduction at 20% under section 206AA was unjustified-PAN had been linked with Aadhaar and late fee paid by vendor-No failure on part of deductors-Orders passed without considering relevant material and in violation of principles of natural justice were quashed. [S.194-IA, Income-tax Rules, 1962 r.30(2A), Art.226

S. 201 : Deduction at source-Failure to deduct or pay-Compensation for acquisition of land-Deduction of tax on payment of interest on compensation or enhanced compensation-Legal advice-Land Acquisition Officer acted upon directions of his superior, District Revenue Officer who in turn took legal advice which was based on High Court order-Land Acquisition Officer not at fault-Order levying penalty set aside.[S.45(5)(b), 56(2)(viii), 194A, 194LA, Land Acquisition Act, 1894.S. 28, Art. 226]

S. 153D : Assessment-Search-Approval-Mechanical approval invalid.[S. 132, 153A, 260A]

S. 153C : Assessment-Income of any other person-Search- Assessment order passed many years after assessee had filed return-Order passed without giving assessee opportunity to be heard-Order to be treated as notice and assessment to be made after giving assessee opportunity of being heard-The Assessing Officer was directed to provide a reasonable opportunity to be heard, including a personal hearing, and thereafter issue a fresh assessment order within two months. [S. 132, 143(3)]

S. 153C : Assessment-Income of any other person-Search-Objection to jurisdiction-Delay in filing-Writ petition to quash the assessment order is dismissed. [S. 132, Art.226]

S. 151 : Reassessment-Sanction for issue of notice Conducting inquiry, providing opportunity before issue of notice-Not typographical error-Sanction for issue of notice-Principal commissioner-Non application of mind-Approval under section 151 granted without proper application of mind-High Court quashed notices and orders-SLP delay of 181 days-SLP dismissed on grounds of delay and on merits. [S. 148 148A(b), 148A(d), Art. 136]