9911796707
TMI Blog1998 (9) TMI 54X X X X Extracts X X X X X X X X Extracts X X X X ..... n accepted and on the basis of the seized materials the income assessed for 1983-84 was Rs. 4,18,877 and for 1984-85 it was Rs. 1,33,432. The petitioner has challenged the search which was conducted by the Department, but this court has upheld the action of the Department and the search conducted at the premises of the petitioner. In the demand notice, the Assessing Officer has attached the rent of the building of the assessee for recovery of tax relevant to the assessment years 1983-84, 1984-85, 1990-91 and 1991-92. The case of the petitioner is that the petitioner has paid the entire income-tax for the assessment year 1991-92. Assessment order for 1990-91 was challenged before the appellate authority and the appellate authority has set a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lenged before this court. This court has upheld the validity of the search and on the basis of the materials found during the search, assessments were made for the assessment years 1982-83, 1983-84 and 1984-85. Chapter XVII of the Act provides for collection and recovery of tax. Section 156 of the Act provides when any tax, penalty, fine or interest is payable by any assessee, in consequence of any order under the Act, the Recovery Officer can serve the notice of demand on that assessee. Section 220 of the Act provides that if the assessee fails to pay tax within 30 days from the date of service of the notice, he be treated as defaulter. Section 221 of the Act provides that if the assessee fails to pay the tax within 30 days he is liabl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... record that disposal of appeal may take its own course. However, by this time, if appeals in the above cases are disposed of, you are requested to furnish a copy of the said orders so that necessary revision of demand may be carried out at this end. Also if there is any restraint order obtained by you from the learned High Court in respect of the above assessment years, you are requested to furnish a copy of the same for perusal so that recovery proceedings are not initiated in respect of the outstanding demands of those assessment years. You may appear personally or through your authorised representative on January 24, 1995, at 11.00 a.m. to furnish these documents/proposals for my consideration. But please note that non-production of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e petitioner has no strong grounds for stay of recovery of income-tax. However, an opportunity was given to the petitioner and he was directed to appear before him on August 25, 1986, at 11.30 a.m. in his office. The petitioner failed to appear before the Recovery Officer. Again a show-cause notice was issued to the petitioner in 1995 being annexure-A to the affidavit-in-opposition before issue of the demand notice indicating therein the income-tax outstanding against the petitioner for the assessment years 1982-83, 198384, 1984-85, 1990-91 and 1991-92. The relevant portion of the said letter dated January 3, 1995, has already been quoted earlier in this judgment. Whether opportunity was given to the petitioner before rejecting his applica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and or for stay of tax recovery proceedings. Counsel for the petitioner further submits that there was a nominal income shown by the petitioner for the assessment years 1983-84 and 1984-85, but huge additions were made. In such cases the demand should be stayed. He placed reliance on the decision of the Allahabad High Court in Mrs. R. Mani Goyal v. CIT [1996] 217 ITR 641. The facts of that case are not akin to the facts of this case. In the case in hand, huge additions were made on the basis of the materials seized during the search; but before the Allahabad High Court there may not be sufficient material for such addition. Therefore, that case is of no assistance to the petitioner. To sum up, considering the facts and circumstances of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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