9911796707
TMI Blog2025 (5) TMI 1184X X X X Extracts X X X X X X X X Extracts X X X X ..... of refund of recovered amount during the pendency of the appeal by order dated 22.01.2025 with respect to assessment year 2016- 17 (corresponding to financial year 2015-16). 3. The petitioner, registered Co-operative Society, engaged in facilitating credit services and collection of deposit and giving loans exclusively to its members, has been assessed to tax treating cash deposit of Rs. 2,10,44,000/- in the Allahabad Bank Account as unexplained during the financial year 2015-16 relating to assessment order 2016-17. Assessment was undertaken under Section 147 by issue of notice under Section 148 of the Income Tax Act ("I.T. Act", for short). Treating the entire aforesaid deposit as unexplained cash under Section 69A of the I.T. Act, reass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es (CBDT) to be followed by the Assessing Officer for the purpose of invocation of Section 220 of the I.T. Act, though application was made with prayer to refund the amount so recovered beyond 20% of the demand, the said authority in clear violation of the same rejected the request for refund of recovered amount without taking into account order of stay granted by the Principal Commissioner of Income Tax, Bhubaneswar-I by order dated 22.01.2025. He submitted that during pendency of appeal in consideration of application for stay of demand, the Principal Commissioner of Income Tax, Bhubaneswar-I directed the Assessing Officer to lift attachment by granting full stay of demand till disposal of appeal pending before the Commissioner of Income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ring the pendency of appeal after the petitioner came out successful in the appeal. Therefore, this Court accedes to the submission at the Bar that upon disposal of appeal, the demand raised in the assessment order dated 29.03.2022 passed under Section 147 of the I.T. Act being set aside, it is obligatory on the part of the authority concerned to refund the amount to the petitioner. Therefore, this Court accepting writ petition of the petitioner-Society, directs the opposite parties to refund the amount recovered towards discharge of demand as raised in the aforesaid reassessment order within a period of seven days hence, failing which the amount so withheld, shall carry interest at the rate of 6% per annum from the date of recovery till th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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