Cholamandalam MS General Insurance Co. Ltd. v. ITAT (2018) 305 CTR 891 / 172 DTR 33 (Mad.)(HC)

S. 220 : Collection and recovery-Assessee deemed in default-Time available for filing appeal-Interim protection granted to the petitioners shall continue till the stay petitions in the tax case appeals are heard- During appeal time, if recovery proceedings are initiated, it would virtually render the appeal as infructuous.[S. 260A]

On Writ filed, the High Court held that it is settled legal principle that before expiry of appeal time, if recovery proceedings are initiated, it would virtually render the appeal as infructuous. Considering the fact that the said writ petitions were directed to be numbered and there was an interim stay order passed respective AOs of the petitioners insurance companies are directed not to initiate any recovery proceedings, as the insurance companies have filed appeals or are in the process of filing appeals under S. 260A of the Act. During appeal time, if recovery proceedings are initiated, it would virtually render the appeal as infructuous.