TMI Blog2021 (4) TMI 1165X X X X Extracts X X X X X X X X Extracts X X X X ..... d from time to time, as referred to on behalf of petitioner, which are not disputed by the respondents, it appears to be expedient that the assessing officer refrains from recovering tax dues demanded for AY 2013-14. In the circumstances, a restraint is called for from recovering amount over and above, as per instructions, circulars and guidelines issued by CBDT, from time to time. The amount recovered from petitioner if is over and above as per instructions, circulars, the excess collection over and above the amount required for stay may have to be returned to petitioner and the refunds would not be adjusted till disposal of the appeal. The amount recovered from petitioner over and above the amount as per instructions, memoranda, circular towards demand of tax for the AY 2013-14 pending in appeal would be returned to the Petitioner with interest according to law and refunds of amounts over and above the amount as per instructions / guidelines may not be adjusted towards tax demand for AY 2013-14 till disposal of appeal. - WRIT PETITION (L) NO. 7231 OF 2020 - - - Dated:- 25-3-2021 - SUNIL P. DESHMUKH ABHAY AHUJA, JJ. Mr. Siddharth Bhole a/w Mr. Kalpesh Taralkar i/b. S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r along with interest. Similar request has been made in November, 2020. Since petitioner was not getting any response, petitioner was constrained to be before this Court. 4. It is being referred to that due to COVID-19 pandemic and lock down, business has been badly affected leading to financial crunch making it difficult for petitioner to arrange for day to day administrative and operative expenses. 5. It is requested that condition in the stay order dated 26.06.2018 be declared void, without jurisdiction and illegal and Petitioner seeks writ of Certiorari to quash the impugned refund orders to the extent that they seek adjustment against demand for AY 2013- 14, and writ prohibiting and restraining recovery by adjustment of refunds against the demand for the AY 2013-14 is sought with a direction to refund of amounts referred to in prayer clauses (e) to (h). 6. Mr. Bhole, learned counsel for Petitioner submits that successive circulars have been issued by the CBDT giving guidelines for stay to recovery of demand at the first appellate stage and exercise of power under section 220(6) as such is regulated by the same. He purports to point out Instruction No. 1914 of 02.02.19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nature of the circulars issued by CBDT and that revenue is bound by the same and cannot be allowed to plead those being not valid or are contrary to the terms of the statute. 9. Mr. Bhole, learned counsel for petitioner submits that technical difficulty in processing refund is not a ground to deny refund to petitioner, when the petitioner is entitled in fact and in law to have refund. 10. The respondents have submitted reply to the petition. It is being referred to that provisions of the Income Tax Act empower the Assessing Officer to hold onto the money on account of the assessee, and to adjust against the outstanding demands. It is contended that instructions have been properly followed by the assessing officer which are issued for internal circulation as guidelines to recover demands. As a matter of principle, every demand should be recovered as soon as it becomes due and the demand can be kept in abeyance for valid reasons only, in accordance with the guidelines. Instruction No. 1914 dated 21.03.1996 issued by the Board is regarding procedure for recovery of outstanding demand. The subsequent office memoranda are partial modifications. 11. To the Affidavit-in-reply, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the system by assessing officer. 15. Section 143 (1B) of the Act is as under :- (1B) Save as otherwise expressly provided, for the purpose of giving effect to the scheme made under sub-section (1A), the Central Government may, by notification in the Official Gazette, direct that any of the provisions of this Act relating to processing of returns shall not apply or shall apply with such exceptions, modifications and adaptions as may be specified in that notification; so, however, that no direction shall be issued after the 31st day of March, (2012). 16. Sub-section 143(1B) reflects, for giving effect to the scheme pursuant to sub-section (1A), a notification with respect to application or non-application of any provisions relating to processing of return may be issued and no such notification under Section 143(1B) has been referred to by parties. Having regard to the context of sections 143(1A), 143(1B), it does not appear Clause 10 under the scheme is intended to be read out of the context isolatedly. 17. It would, thus, emerge that the scheme pursuant to 143(1A) will have to be taken into account alongwith other provisions of Act and would take within its fold ins ..... X X X X Extracts X X X X X X X X Extracts X X X X
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