The appeal of the petitioner was pending before the CIT(A). The Assessing Officer recovered more than 20 per cent of the tax in dispute. The assessee filed writ and contended that the recovery of more than 20 per cent of tax in dispute is contrary to the office memorandum O. M. No. 404/ 72 /93-ITCC dt. 29th February 2016 (2016) 284 CTR 6 (St) as amended by the Office Memorandum No. 404/72 /93-ITCC dt. 25th August, 2017. Allowing the petition the Court directed the department to refund the amount adjusted in excess of 20 per cent of the disputed amount. (AY. 2015-16, 2016-17)
Skyline Engineering Contractors (India) (P) Ltd. Dy. CIT (2021) 206 DTR 60 / 322 CTR 745 (Delhi)(HC)
S. 220 : Collection and recovery-Assessee deemed in default-Adjustment of demand-Pendency of appeal before CIT(A)-Department is entitle to seek pre-deposit of only 20 per-cent of the disputed demand-Directed to refund the amount adjusted in excess of 20 percent of the disputed demand. [S. 245, Art. 226]