Great Barter Private Limited Vs ACIT (Calcutta High Court)
The Calcutta High Court disposed of two intra-court appeals arising from a common order dismissing writ petitions challenging an Assessing Officer’s order passed on an application under Section 220(6) of the Income-tax Act. The Assessing Officer had directed the assessee to deposit 20% of the tax demand as a condition for grant of stay of recovery pending disposal of the statutory appeal. Before examining the merits, the Court condoned the delay of 469 days in filing the appeals after finding the reasons stated in the supporting affidavit satisfactory.
The Court noted that the assessments were high-pitched and that the assessee had filed appeals before the Commissioner of Income Tax (Appeals) within the prescribed limitation on 25 January 2018. The appeals, however, had remained pending for more than two years. Referring to decisions of the Delhi High Court concerning high-pitched assessments and CBDT instructions, the Court observed that where assessments are unreasonably high-pitched and appeals are pending, recovery notices may remain stayed until disposal of the first appeal. The Court further noted that the return originally filed by the assessee was a loss return, whereas the Assessing Officer had assessed positive income, and that the demand notice had not been enforced till the date of hearing.
