Where High Court, by an ad-interim order, had stayed notice issued under section 148, assessment order and further proceedings by Revenue, Assessing Officer had no authority, during subsistence of such order, to treat the stayed notice under section 148 as a show-cause notice under section 148A(b) or to pass an order under section 148A(d); further, since operation of assessment order was stayed and recovery could not have been initiated, adjustment of refund due to assessee against demand arising from such stayed assessment was impermissible and Revenue was directed to deposit the adjusted amount in Court.
Dominion Diamond (India) (P.) Ltd. v. ACIT [2025] 179 taxmann.com 508 (Bom)(HC)
S. 148A: Reassessment-Conducting inquiry, providing opportunity before issue of notice-Interim stay granted by High Court-Strictures-Adjustment of refund-Where High Court by virtue of ad-interim order stayed notice under section 148, assessment order, and restrained revenue from taking further steps, Assessing Officer had no authority to treat stayed notice as one under section 148A(b) or to pass an order under section 148A(d)-Adjustment of refund against stayed demand was also impermissible, and revenue was directed to deposit adjusted amount in court [S. 148, 148A(b), 148A(d), 220, Art. 226]
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