Acceptance of letters without acknowledgment is unacceptable: HC

Brief of the case :

The Hon’ble Bombay High court in the case of Piramal Fund Management Pvt. Ltd. vs. DCIT held that income tax officer to whom an application is made should give an acknowledgment of having received and accepted the application on face if the same is found in prescribed manner with prescribed details. Not giving acknowledgment even after accepting the application is unacceptable conduct on the part of officer.

 Facts of the case:

• The Assessing Officer for the Assessment Year 2012-13 had by order dated 19th January, 2016 raised a demand of Rs.52.08 crores. Assessee (Petitioner) challenged the assessment before CIT(A) by filling an appeal on 24^th Feb, 2016. Thereafter, the petitioner filed its application for stay in terms of section 220(6) of the Income Tax Act, 1961. This was along with an application dated 17th February, 2016 for stay of penalty proceedings.
• The Assessing Officer accepted the stay application, however, he did not provide an acknowledgment of having accepted and received the stay application dated 17th February, 2016.
• This action on the part of the Assessing Officer led the petitioner to file this petition on 23rd February, 2016. Immediately thereafter, the Assessing Officer provided an acknowledgment to the stay application in terms of Section 220(6) of the Act dated 17th February, 2016 on 23rd February, 2016 to the petitioner.
• AO in his affidavit stated that the petitioner should have filed its application for stay at the ASK center located in Aayakar Bhavan, where the Income Tax Department has made arrangements for acceptance of tapal(correspondences) addressed to all the officers located at Aayakar Bhavan.
• Assessee complained such as an irresponsible conduct of AO.

 Held by Hon’ble High Court: