Case Law Details
Rajendra Kumar Vs ACIT Jaipur (Rajasthan High Court)
Facts- On 13/12/2019 one Assessment Order was passed by the respondent no.1-AO u/s. 143(3) for the AY 2017-18 and a demand of Rs.2,09,44,100/- was raised u/s. 156 against which the petitioner-assessee filed an appeal u/s. 246 on 26/12/2019 in the prescribed form submitting that he has a prima-facie case and the demand raised is not maintainable.
On 13/01/2020, Income Tax Return for the AY 2018-2019 processed by the CPC Wing of the respondent-department and a refund of Rs.70,86,950/- due in favour of the petitioner-assessee was adjusted against the balance demand of AY 2017-18 created on 13/12/2019. The petitioner-assessee filed a Stay Application in response to intimation issued to him on 13/01/2020 u/s. 245 in the form of a Note mentioned in the order dated 13/01/2020.
The petitioner-assessee contended that in terms of the order u/s. 245 of the IT Act, the appeal was preferred by him immediately and as per provisions of Section 220(6) of the IT Act, he cannot be termed as an assessee in default.
Conclusion- Held that the mandate of Section 220(6) of the IT Act makes it very clear that once an appeal is filed within time in the prescribed format, the assessee will not be deemed as an ‘assessee in default’.
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