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TMI Blog2022 (4) TMI 623X X X X Extracts X X X X X X X X Extracts X X X X ..... A/RCV/S/221/2021-22/1037345342(1) dated 29.11.2021 in respect of assessment year 2013/14 by the 3rd respondent and quash the same as it is initiated without jurisdiction and against the provisions of Income Tax Act. 2. For the assessment year 2013-2014, there was an assessment order under Section 147 of the Income Tax Act, 1961 dated 31.12.2015. As against the said assessment order, the petitioner already preferred appeal before CIT (Appeal) and the same is pending, where, even though the petitioner had sought for a stay of the demand, the said stay petition is yet to be decided. 3. In the meanwhile, the petitioner also filed application under Section 220(6) of the Act to seek for a stay before the Assessing Authority. 4. The Assessing A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0(6) of the Act and therefore, for all these reasons, now the present proceedings initiated by way of notice under Section 220(1) of the Act for penalty proceedings is against the principles of natural justice and also without jurisdiction, therefore, the said proceedings is liable to be interfered with and set aside, he contended. 8. In support of his contention, the learned counsel appearing for the petitioner also relied upon a decision of the Hon'ble Supreme Court reported in (2001) 251 ITR 158 in the matter of Kec International Limited Vs. B.R.Balakrishnan and others. 9. Per contra, Mr.D.Prabhu Mukunth Arunkumar, learned Standing Counsel appearing for the respondents would submit that, mere filing of an appeal before CIT (Appeal) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alleged reason stated by the petitioner, hence, the learned Standing Counsel seeks dismissal of this writ petition. 10. I have considered the said rival submissions made by the learned counsel appearing for the parties and have perused the materials placed before this Court. 11. As has been rightly pointed out by the learned Standing Counsel appearing for the respondents, mere filing of an appeal before the Appellate Authority against the order passed under Section 147 of the Act would not preclude the Assessing Authority to make a demand and also to initiate penalty proceedings. In this case, during the pendency of the appeal, the petitioner also has filed an application for stay under Section 220(6) of the Act and the said application ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ting proceedings for penalty under Section 221(1) of the Act, it has made clear that, if there is any due of tax who is in default or deemed to be in default in arrears, the Assessing Officer may direct in case of a continuing default, such further amount or amounts as the Assessing Officer may, from time to time, direct by way of penalty, but only condition is that, the penalty does not exceed the amount of tax in arrears. The proviso to Section 221 (1) says that, before levying any such penalty, the assessee shall be given a reasonable opportunity of being heard. 16. Only in order to comply with the said proviso under Section 221(1) of the Act, now the present notice, which is impugned herein, has been issued by the respondents. Therefor ..... X X X X Extracts X X X X X X X X Extracts X X X X
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