Asa International India Microfinance Limited Vs DCIT (Calcutta High Court)
The Calcutta High Court considered a writ petition challenging the recovery of disputed income tax demand for Assessment Year (AY) 2012-13 during the pendency of the petitioner’s appeal before the Commissioner of Income Tax (Appeals). The petitioner challenged the adjustment of refunds due for AYs 2018-19 to 2022-23 against the disputed demand.
The assessment for AY 2012-13 was completed under Section 143(3) of the Income Tax Act, 1961, on 19 March 2015, resulting in a demand of Rs.48,95,220. A further demand of Rs.7,99,50,700 was raised for AY 2011-12 through a reassessment order passed on 25 December 2019 under Sections 144/147. The petitioner filed an application for rectification and stay of demand on 22 January 2020 and preferred appeals before the Commissioner of Income Tax (Appeals) on 24 January 2020.
On 3 March 2020, the Assessing Officer issued garnishee notices under Section 226(3) to the petitioner’s bankers for recovery of the disputed demands for AYs 2011-12 and 2012-13. Subsequently, on 17 March 2020, the petitioner sought adjustment of its refund for AY 2017-18 and undertook to pay an additional Rs.3,76,950 so that more than 20% of the disputed demand stood paid. The refund of Rs.1,67,50,378 for AY 2017-18 had already been adjusted on 28 February 2020, and the additional amount was paid on 19 March 2020. Thereafter, the garnishee notices were withdrawn.
