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2017 (6) TMI 606 - HC - Income TaxRecovery proceedings u/s 221 - assessee in default - withdrawing a sizeable sum from such bank account unilaterally - validity of recovery proceeding where notice was not served - Filing of appeal before CIT(A) without seeking stay - Held that:- the respondent affected recovery from the bank account of the petitioner without following due process. It is true that, the petitioner ought to applied to the Assessing Officer or to the Appellate Authority for keeping the additional tax demand in abeyance, which the petitioner did not do. Nevertheless, this would not enable the authorities to ignore the legal requirements before affecting the recovery. Under the circumstances, the recovery of ₹ 19,22,770/- made by the respondent is declared to be illegal. The respondent has not setup a case that the petitioner is a chronic defaulter, a person who may ultimately not be able to pay the dues if the appeal is dismissed or that there are other assessment or appeals pending, in which sizeable tax demands are held up. - Revenue directed to retain 15% and refund 85% of the amount with 8% interest. - Decided partly in favor of assessee.
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