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2014 (2) TMI 271 - HC - Income TaxStay of demand - Relief / refund where the amount recovered when stay application is pending - Held that:- Relying upon the decision in UTI Mutual Funds vs. ITO [2012 (3) TMI 333 - BOMBAY HIGH COURT ] - No recovery of tax should be made before expiry of the time limit for filing an appeal before the higher forum has expired - When the bank account has been attached the revenue would not withdraw the amount unless it has furnished a reasonable prior notice to the assessee to enable the assessee to seek recourse to a remedy in law - The action of the petitioner revenue in not only attaching the bank account but withdrawing the money from the bank was before the expiry of the time limit for filing appeal was not justfied. The undue haste on the part of the Assessing Officer in recovering a sum of Rs.159.84 crores was not only contrary to the binding decisions of this Court but also shocking to the judicial conscience. No appellate authority and much less the Tribunal can be a silent spectator to the arbitrary and illegal actions on the part of the Assessing Officer so as to frustrate the legal process provided under the Act. In terms of the proviso to Section 254(2A) of the Act, the Tribunal is empowered to grant stay against any demand, pending disposal of appeal before it - The order passed by the Tribunal directing the revenue to refund the amount of Rs.159.84 crores to respondent No.2 was upheld - Decided against petitioner.
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