No Recovery of Income Tax Demand relating to Issues Already decided in Assessee’s Favour: Delhi HC upholds CBDT Circular [Read Order]
![No Recovery of Income Tax Demand relating to Issues Already decided in Assessee’s Favour: Delhi HC upholds CBDT Circular [Read Order]](https://www.taxscan.in/wp-content/uploads/2022/08/Income-Tax-Demand-Assessees-Favour-Delhi-HC-CBDT-Circular-taxscan.jpg "No Recovery of Income Tax Demand relating to Issues Already decided in Assessee’s Favour: Delhi HC upholds CBDT Circular [Read Order]")
The Delhi High Court has quashed the recovery proceedings for the income tax demand relating to the issues already decided in favour of the assessee by relying on the circular issued by the Central Board of Direct Taxes (CBDT). The assessee, M/S Expeditors International of Washingtion, Inc, has contended that the challenge is primarily on the ground that said order has been passed...
The Delhi High Court has quashed the recovery proceedings for the income tax demand relating to the issues already decided in favour of the assessee by relying on the circular issued by the Central Board of Direct Taxes (CBDT).
The assessee, M/S Expeditors International of Washingtion, Inc, has contended that the challenge is primarily on the ground that said order has been passed arbitrarily as the payment has been directed against additions which stand covered in favor of the Petitioner by a series of decisions rendered by the Tribunal in the Petitioner’s own case in previous seven assessment years.
Justice Manmohan and Justice Manmeet Pritam Singh Arora observed that the Board has itself issued Instruction No.1914 dated 2nd February, 1993 giving guidelines for Stay of Demand. One of the Guidelines for grant of complete stay is “if the demand in dispute relates to issues that have been decided in assessee’s favour by an appellate authority or court earlier....”
Noting that the impugned Order is in the teeth of the decisions of this Court which have categorically held that recovery of demand against issues which have been decided in favour of Assessee is wholly unwarranted, the High Court concluded that “Consequently, keeping in view the Guidelines/Instruction issued by the CBDT subsequent to the judgment of the Supreme Court in Dunlop India Ltd.(supra), the condition of deposit of Rs.5 crore imposed by the Tribunal vide impugned order dated 14th July, 2022 is set aside and the matter is directed to be heard by the Tribunal as expeditiously as possible. With the aforesaid direction, the present writ petition along with pending application stands disposed of.”
Mr.Deepak Chopra with Mr.Rohan Khare, Advocates appeared for the assessee.
To Read the full text of the Order CLICK HERE
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