Recovery of Demand by the ITO in case of Appeal Preferred against order., Income Tax

[Haresh Raithatha]

Dear SIr

A demand of ₹ 1212910\- (Tax ₹ 670000+540000 Interest) for A.Y,. 2010-11 raised by the A.O as per order u/s 263. We have preferred an appeal against the order and paid ₹ 100520\- being 15% of Tax Amount as per order. The AO is insisting to pay 15% of Total amount i.e. Rs.181900\- (Income tax +Interest). He has attach my bank account for paying differencial of Rs/81417\-... Can He do so? Since the assesse is agreevied with Tax demand and preferred an apppeal. How the interest on Demand of Income tax can recover since the tax is also not accepted by the assessee...

PL advise

Posts / Replies

[MARIAPPAN GOVINDARAJAN]

When the appeal is pending before the Appellate Authority the Assessing Officer cannot demand any amount outstanding. Did you get stay of the order of the Assessing Officer from the Appellate Authority? You may file stay petition before the Appellate Authority, if you have not already filed. Or you may file a writ petition before the High Court challenging the demand of Assessing Officer.