TMI Blog2016 (3) TMI 687X X X X Extracts X X X X X X X X Extracts X X X X ..... g Officer, if permitted, would lead Section 220(6) of the Act becoming redundant. In the above view, the Notice under Section 226(3) of the Act issued by the Assessing Officer to the petitioners' bankers are quashed and set aside. Further, the Assessing Officer is directed to deposit the amount of ₹ 7,59,185/in HDFC Bank, Fort, Mumbai and ₹ 34,265/in State Bank of India, Byculla, Mumbai within a period of one week from today. The Assessing Officer to dispose of the petitioners' pending stay application in accordance with law. - Writ Petition (L) No. 710 of 2016 - - - Dated:- 17-3-2016 - M. S. Sanklecha And A. K. Menon, JJ. For the Petitioner : Mr. J.D. Mistri, Senior Counsel a/w Madhur Agarwal, Atul Jasani For t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the demand inter alia on the ground that the issue arising in this case is concluded in its favour by a decision of the Tribunal in its own case for the A.Y. 200001. 4. The Assessing Officer by a letter dated 20th August, 2015 disposed of the petitioners' Rectification Application under Section 154 of the Act. The order reads thus : ORDER UNDER SECTION 154 OF THE I.T. ACT, 1961 In this case, the assessment order completed u/s 143(3) r.w.s. 263 of the I.T. Act, 1961 on 27.03.2015 determining the total income at ₹ 1,17,10,64,977/. The assessee's representative filed a rectification application dated 14.04.2015 requesting to rectify the mistake u/s 154 of the I.T. Act, 1961. 2. On verification of the case r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e would issues a notice of demand under Section 156 of the Act. Section 220 of the Act provides that within a period of 30 days from the date of the service of the demand notice under Section 156 of the Act, the assessee concerned has to make necessary payment to the person and place mentioned in the Notice of demand. In case, the assessee fails to make the payment in terms of the notice of demand, he would be considered to be an assessee in default, enabling the Revenue to adopt coercive measures for recovery of the amount due. However, Section 220(6) of the Act provides that where an assessee has filed an appeal against the assessment order to the Commissioner of Income Tax (Appeals) then, an assessee is entitled to file an application to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts appeal before the CIT (Appeals) is concluded in its favour by virtue of Tribunal's order for Assessment Year 2000-01 in the petitioners' own case. Thus, according to us, the application for stay filed on 14th April, 2015 filed jointly with the Rectification Application is not yet been disposed of by the Assessing Officer. The order dated 20th August, 2015 has only disposed of the petitioners' Rectification Application. 8. Thus, any action to recover taxes adopting coercive means is not permissible till the petitioner's application for stay under Section 220(6) of the Act is disposed of. 9. Therefore, the action of the Assessing Officer in attaching the petitioners' bank accounts under Section 226(3) of the Act a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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