TMI BlogPower of ITO u/s 220(6) of the Income tax act 1961.X X X X Extracts X X X X X X X X Extracts X X X X ..... . Act in respect of the amount in dispute before the first appellate authority had been informed by the ITO that balance of demand is stayed till 31st December, 1979 or decision of first appeal, whichever is earlier. Subsequently, when certain refunds become due to the assessee, the ITO adjusted the refunds arising to the assessee against a part of the outstanding disputed demand, invoking the pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng to this conclusion reliance was placed upon the decision of the Madras High Court in the case of Ramanathan Chettiar Vs. Additional Income-tax Officer, Madras (1956) 29 ITR 683 in which a similar question arose. 3. The effect of instructions contained in Board's circular No.3-D(LXXII-21) of 1968, dated 29th January 1968 clarifying that the taxes kept in abeyance under the provisions of sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the amount found refundable to the assessee, only adjusted the same towards the liability of the assessee to pay the tax which was in existence and which continued to be in existence notwithstanding the fact that the Income-tax Officer has "stayed" the enforcement of the demand till 31st December, 1979. 5. It has been pointed out that section 220(6) of the Income-tax Act only empowers an Income- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appeal or, as the case may be, on such part of the tax until the prohibition or restriction is removed. 6. The Board would also like to stress that before making any adjustment u/s 245, it is necessary for the Income-tax Officer to give an intimation of the action proposed to be taken under this section, in writing, to the assessees. - Circular - Trade Notice - Public Notice - Instruction ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
