The Madras High Court has held that when a revisional order under section 263 of the Income Tax Act, 1961, is pending before the Tribunal, the Assessing Officer shall wait to initiate the proceedings at least till the disposal of the matter by the Tribunal.
The petitioner/assessee contended that when the appeal is pending before the ITAT against the order passed in revision under Section 263 of the Act, where since there has been no provision to seek for a stay of further proceedings pursuant to the order under appeal, now the assessing authority has initiated the proceedings. The petitioner wants to complete the proceedings and once they complete the proceedings, they may further go ahead with the issuance of demand notice, thereby the assessee’s appeal which is pending for consideration would become infructuous and therefore, pleaded the High Court to preclude the assessing authority from proceeding further pursuant to the notice dated 06.02.2022, till the disposal of the appeal.
The Revenue, on the other hand, contended that merely because the 06.02.2022 notice was issued by the assessing officer, the appeal filed by the petitioner would not become infructuous and the same, as parallel proceedings, can be proceeded ahead by the ITAT for which date has been fixed. It was further contended that an assessing officer need not wait endlessly for the outcome of the decision to be made by the Tribunal.
Justice R Suresh Kumar laid down certain directions to the Assessing Authority and the Tribunal to expedite the appellate proceedings, held that “assuming that, if the assessing officer goes ahead with the completion of the assessment pursuant to the notice dated 06.02.2022 and if ultimately he passes an order, based on which this Court feels that at least the assessing authority would not proceed further to make any demand pursuant to such order of assessment, at least till the disposal of the appeal which is pending before the ITAT.”
M/s.Taqa Neyveli Power Company Private Limited vs The Income Tax Appellate Tribunal
CITATION: 2022 TAXSCAN (HC) 209
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