2012 (4) TMI 598 - HC - Income Tax

Summary

Issues Involved:
The petitioner filed an appeal against the income tax assessment order for the year 2009-2010 and sought relief from being treated as in default for payment of tax.

Income Tax Assessment Appeal:
The petitioner filed an appeal, Ext.P2, against the income tax assessment order for the year 2009-2010. The assessing authority directed the petitioner to pay the balance tax in instalments, which the petitioner contested, claiming to have already paid substantial amounts towards the tax assessed. Citing a judgment from the High Court of Allahabad in Ext.P7, the petitioner argued that recovery proceedings should be stayed pending appeals. The petitioner sought a writ to quash the order granting instalments and to direct the Commissioner of Income tax to dispose of the appeal early, preventing the petitioner from being treated as an assessee in default.

Court's Decision:
The court noted that the petitioner has the option to file a stay petition in the appeal pending before the appellate authority. Consequently, the court directed the petitioner to file an application for stay within one week. The Commissioner of Income tax was instructed to consider and pass orders on the application within one month. Until a decision is made, coercive recovery of the balance tax shall be suspended as per the assessment order.

This judgment emphasizes the importance of following the proper legal procedures in challenging income tax assessments and seeking relief through the appropriate channels provided by the law.