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Issues:
Assessment under the Income-tax Act for the year 1991-92, challenge against exhibit P-4 order passed by the first respondent under section 220(6) of the Income-tax Act, challenge against exhibit P-9 order passed by the second respondent, direction for expeditious disposal of exhibit P-2 appeal, position regarding payment demand under exhibit P-1 order of assessment, and direction to keep revenue recovery proceedings pending. Analysis: The judgment involved a dispute regarding the assessment under the Income-tax Act for the year 1991-92. The petitioner, a partnership firm engaged in the rubber business, challenged the orders passed by the first and second respondents (exhibits P-4 and P-9, respectively). The primary challenge was against exhibit P-4, which was passed under section 220(6) of the Act. The court noted that the order did not conform to the guidelines laid down by previous judgments and was seen as a means to enforce tax collection rather than staying the collection of tax as intended by the provision. Consequently, the court set aside exhibit P-4 order. The judgment further addressed the exhibit P-9 order passed by the second respondent, which granted instalments for payment. The court found the reasoning behind this order lacking and referred to a circular issued by the Central Board of Direct Taxes, emphasizing its relevance in exercising discretion under section 220(6). As a result, the court set aside the exhibit P-9 order as well. Regarding the pending exhibit P-2 appeal, the court directed the second respondent to consider and dispose of it expeditiously within three months. The petitioner's inability to pay the demanded amount was acknowledged, and a direction was issued to keep revenue recovery proceedings on hold until the appeal was resolved. This decision aimed to prevent any adverse actions against the petitioner and the firm during the appeal process. In conclusion, the writ petition was disposed of with the court's rulings on setting aside the exhibit P-4 and P-9 orders, expediting the exhibit P-2 appeal, and suspending revenue recovery proceedings pending the appeal's outcome.
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