Refuge And Another Vs ITO (Calcutta High Court)
The Calcutta High Court disposed of a writ petition filed by a charitable society challenging recovery proceedings arising from an order passed under Section 154 of the Income-tax Act, while directing the appellate authority to dispose of the pending appeal within six months and restraining the tax authorities from taking coercive recovery steps until the appeal attains finality.
The petitioner society, registered under the Society Registration Act and engaged in charitable activities, had filed Form 10A seeking registration under Section 12A(1)(ac)(iii) for Assessment Years 2022-23 to 2026-27. For Assessment Year 2021-22, it filed a return declaring nil income and claiming a refund of ₹46,470. Subsequently, the Assessing Officer passed an order under Section 154, assessed income, and raised a demand, resulting in what the petitioner described as a high-pitched assessment. The petitioner filed an appeal before the appellate authority, which remained pending after written submissions and supporting documents were uploaded in response to notices issued by the authority. Meanwhile, the Assessing Officer issued notices requiring payment of at least 20% of the outstanding demand with interest under Section 220 and warned that failure to pay would result in the petitioner being treated as an assessee in default.
