Case Law Details
NSPIRA Management Services Private Limited Vs DCIT & ACIT (Telangana High Court)
From a perusal of the impugned order dated 16.12.2022, it is seen that respondent No.1 had followed instructions of the Central Board of Direct Taxes (CBDT) dated 31.07.2017 to the effect that where outstanding demand is disputed before the appellate authority, the assessee has to pay 20% of the disputed demand. Accordingly, petitioner has been directed to pay 20% of the outstanding demand.
We are afraid respondent No.1 did not apply his mind while passing the order dated 16.12.2022. It appears to be a mechanical exercise of power. When the Income Tax authority exercises jurisdiction under Section 220(6) of the Act, he exercises quasi-judicial powers. While exercising quasi-judicial powers, the authority is not bound or confined by departmental instructions.
That being the position, HC set aside the order dated 16.12.2022 passed by Assessing officer and remand the matter back to Assessing officer for passing a fresh order in accordance with law after giving due opportunity of hearing to the petitioner.
FULL TEXT OF THE JUDGMENT/ORDER OF TELANGANA HIGH COURT
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