Income Tax Act, 1961, Section 220(6)

Recovery--Stay of demand--Appeals pending before appellate authority

Conclusion: Where assessee sought for stay of recovery demand for relevant assessment years as appeals were pending before appellate authority; in the interest of justice, appellate authority was directed to heard and decide the appeals filed by assessee within a period of three months and further, it was directed that for the period of three months or till disposal of said appeals, whichever is earlier, no coercive measure would be adopted against the assessee.

Assessee sought for stay of recovery demand for relevant assessment years as appeals were pending before appellate authority. Held: In the interest of justice, appellate authority was directed to heard and decide the appeals filed by assessee within a period of three months. Further, it was directed that for the period of three months or disposal of said appeals, whichever is earlier, no coercive measure would be adopted against the assessee.

Decision: Directions issued

 

IN THE ALLAHABAD HIGH COURT

SAUMITRA DAYAL SINGH & MANJIVE SHUKLA JJ.

Meerut Development Authority v. Pr. CIT & Ors.

W.T. No. 1323 of 2023

10 January, 2024

Petitioner by: Ashish Bansal

Respondent by: Gaurav Mahajan

ORDER

1. Having heard Shri Ashish Bansal, learned counsel for the petitioner and Shri Gaurav Mahajan, learned counsel for the revenue and having perused the record, this much is undisputed between the parties that the petitioner is a Development Authority enjoying the status of the charitable institution within the meaning of that term as defined under section 2(15) of the Income Tax Act, 1961 (hereinafter referred to as the 'Act').

2. Relying on the recent decision of the Supreme Court in Asstt. CIT (Exemption) v. Ahmadabad Urban Development Authority, (2022) 449 ITR 1 (SC) : 2022 TaxPub(DT) 6906 (SC), learned counsel for the petitioner would contend that the tax liability imposed on the petitioner for the assessment years 2013-14, 2015-16, 2016-17, 2017-18, 2018-19, 2020-21 is not in accordance with law. Arising from the high pitched assessment order made against the petitioner for the above described assessment years the petitioner has filed first appeals under section 246A of the Act. Those are pending before the First Appeal Authority. It also appears that the appeals are pending at different stages. In some of those appeals, stay orders have been granted while no stay orders have been passed in assessment years 2018-19 and 2020-21. It is also clear that against the demand raised for various assessment years, deposits had been made by the petitioner and adjustments of refund have been made by the revenue, specifically for the assessment years 2013-14, 2015- 16 and 2016-17.

3. In those years, in view of the Office Memorandum dated 31-7-2017, the petitioner claims no recovery and/or adjustment of refund may have been made in excess of 20% of the disputed demand. Yet, much higher amounts have been adjusted.

4. While learned counsel for the petitioner initially prayed for stay of recovery for the assessment years 2017-18, 2018-19 and 2020-21 which has been opposed with equal vehemence by learned counsel for the revenue, on the suggestion of the Court, both parties agree that the cause of action giving rise to the present petition may stand better addressed, if the appeals filed by the petitioner being Appeal Nos. CIT (A), Ghaziabad/10660/2016-17, CIT (A), Meerut/10399/2017-18, CIT (A), Meerut/10337/2018-19, NFAC/2016-17/1020668, NFAC/2016-17/1020669, NFAC/2017-18/10039960 & NFAC/2019-20/10193992 are dealt with and decided on their own merits, expeditiously.

5. Accordingly, in the interest of justice, writ petition is disposed of with the direction, let the Appeal Nos. CIT (A), Ghaziabad/10660/2016-17, CIT (A), Meerut/10399/2017-18, CIT (A), Meerut/10337/2018-19, NFAC/2016-17/1020668, NFAC/2016-17/1020669, NFAC/2017-18/10039960 & NFAC/2019-20/10193992 be heard and decided by the Appeal Authority within a period of three months from today.

6. In view of the facts noted above, for the period of three months or disposal of the above described appeals, whichever is earlier, no coercive measure shall be adopted against the petitioner for assessment years 2017-18, 2018-19 and 2020-21.