2022 (11) TMI 1024 - HC - Income Tax

Recovery proceedings u/s 220 - appropriate authority seeking protection against any coercive proceedings - HELD THAT - If the Petitioner intends to seek protection against any coercive proceedings, it is always open to the Petitioner to approach the appropriate authority under Section 220(6) of the Income Tax Act, 1961 by filing stay application pending appeal. Petitioner may move an application u/s 220(6) within a week from today. If any such application is filed, the same shall be disposed of within a period of ten days from the date of receipt of such application in accordance with law. The above order will not have any bearing on adjustments, if any, already made. It is made clear that this Court has not expressed any view with regard to the merits of the matter and it is open to the appropriate Respondents to consider the same on its own merits. WP disposed of.

Summary

Issues:
- Coercive steps for recovery of assessed amounts for multiple years
- Pending appeal against assessment orders
- Threat of coercive steps to recover refund due for a different assessment year
- Revenue's adjustment of refunds for some years
- Petitioner's right to seek protection under Section 220(6) of the Income Tax Act, 1961

Analysis:
The Writ Petition seeks to restrain the 2nd Respondent from taking coercive measures to recover amounts assessed for the years 1998-99 to 2002-03. The Petitioner's counsel highlights a total demand of Rs.67,72,869 for these years and mentions a pending appeal before the 1st Respondent. Additionally, a refund of Rs.1,91,81,434 is due to the Petitioner for the assessment year 2021-22, raising concerns about potential set-off against the liabilities under appeal.

The Respondents' Senior Standing Counsel mentions that the Revenue has already adjusted some refunds, although specific details are not provided. In response, the Court suggests that the Petitioner can seek protection under Section 220(6) of the Income Tax Act, 1961 by filing a stay application pending appeal within a week. Any such application will be decided within ten days, without affecting previous adjustments. Importantly, the Court clarifies that its order does not imply a stance on the case's merits, leaving it to the Respondents to evaluate independently.

In conclusion, the Writ Petition is disposed of with the direction for the Petitioner to pursue protection under Section 220(6) promptly. No costs are awarded, and the connected Miscellaneous Petition is closed, emphasizing the need for timely resolution and adherence to legal procedures in addressing the issues raised in the petition.