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The Tax PublishersW.P. Nos. 41087, 41088 of 2015, W.P. No. 6293 of 2016, M.P. Nos. 1, 1 & 2 of 2015 and W.M.P. No. 5599 of 2016
2021 TaxPub(DT) 0274 (Mad-HC)INCOME TAX ACT, 1961
Section 220(2)
Where assessment of liability for income-tax of private limited company was set aside by Tribunal and the matter had been remitted for fresh determination and thereafter, another order of assessment has been passed raising fresh demand for payment against which the said Company has filed appeal before the CIT(A) which was pending, orders raising demand for payment from assessee based upon the assessment orders on the said company cannot survive and however, this would not preclude the concerned authority from pursuing the claim for recovery based on the fresh assessment.
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Recovery - Stay of demand - Assessee-in-default under section 226 -
It was borne out from the record that M/s. S had owed income-tax dues for which the Dy. CIT demanded payment by an Order passed under section 143(3). As the said Company did not make payment of that amount, recovery measures were initiated and notice under section 226(3) was issued to assessee to pay forthwith any amount due to the said Company or held for or on account of that assess upto the amount of the arrears. Assessee had not complied with that demand made, it was treated as an assessee-in-default in terms of section 226(3)(x) and notices under section 226(3) was issued to its banker. Held: As brought to notice that after the filing of petition, assessment of liability for income tax of M/s. S was set aside by Tribunal and the matter had been remitted for fresh determination and thereafter, another order of assessment was passed raising fresh demand for payment against which the said Company filed appeal before the CIT(A) which was pending. In view of the subsequent events after the filing of Writ Petition, orders raising demand for payment from assessee based upon assessment orders of M/s. S cannot survive and accordingly, the same are set aside. However, this would not preclude concerned authority from pursuing the claim for recovery based on the fresh assessment in the manner recognized by law.
REFERRED :
FAVOUR : Directions issued.
A.Y. :
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