Petitioner filed appeals before CIT(A) along with applications for condonation of delay in filing appeals as also for stay on assessment orders. Petitioner, apprehending that respondent authority would go to next step and withdraw entire tax amount from its account already frozen by revenue, filed writ petition seeking direction to CIT(A) to keep all coercive proceedings including freezing of bank accounts of petitioner under abeyance till final disposal of said appeals. Petitioner also offered to deposit 10 percent of tax as demanded in assessment orders. Court directed the petitioner to deposit 10 percent of tax amount within a week whereas revenue should not recover tax amount until disposal condonation of delay application within two weeks from assessee’s representation.
Hi Care Gloves (P.) Ltd. v. DCIT (2019) 267 Taxman 42 (Ker.)(HC)
S. 220 : Collection and recovery-Assessee deemed in default– Pendency of appeal before CIT(A) and condonation of delay– Offered to pay 10% of tax demand–Court directed the CIT(A) to dispose the application for condonation od delay–Not to recover further tax amount until disposal of applications for condonation of delay. [S. 246A, Art. 226]