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2019 (6) TMI 148 - HC - Income TaxStay of demand - refund of ₹ 76,56,400/- for the AY 2015- 16 has been adjusted towards the demand - assessee requested to refund the amount in excess of 15% of the demand adjusted and also prayed to stay the remaining demand of 85% till the disposal of the appeal - coercive steps towards recovery of the disputed tax - HELD THAT:- Respondent No.1 has proceeded to issue the recovery notice during the pendency of the stay applications pending before the respondent No.2, when an appeal is preferred before the Commissioner of Income Tax [Appeals] against the Assessment order for the year 2013-14. Instruction No.1914 dated 02.12.1993 of the Board would make it clear that the stay petition filed with the Assessing Officer must be disposed of within two weeks of the filing of petition by the taxpayer.. The assessee must be intimated of the decision without delay. In terms of Clause 4 of the Office Memorandum [F.NO.404/72/93-ITCC] dated 29.02.2016, in order to streamline the process of grant of stay and standardize the quantum of lump sum payment required to be made by the assessee as a pre-condition for stay of demand disputed before CIT [A], the following modified guidelines are being issued in partial modification of Instruction No.1914: [Office Memorandum dated 31.07.2017] where the outstanding demand is disputed before the CIT[A], the assessing officer shall grant stay of demand till disposal of first appeal on payment of 20% of the disputed demand The action of respondent No.1 in initiating the recovery notice is obviously contrary to the aforesaid Instructions and the Office Memorandum issued by the Board. Hence, the same cannot be held to be justifiable which necessarily calls for interference by this Court. This Court deems it appropriate to quash the recovery notice at Annexure-A and to direct the respondent No.2 to dispose of the stay application filed by the petitioner on 09.05.2016 and 04.02.2017 vide Annexures-B and E respectively to the writ petition. - The recovery notice dated 20.11.2018 is quashed
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