Jammu & Kashmir and Ladakh HC stays Income Tax Order passed beyond statutory period [Read Order]
In the event the petitioner initiates the necessary proceedings, as indicated earlier or file an appeal, within two weeks, the order dated August 28, 2020 shall remain operative till the decision of the said appeal/proceedings
The Jammu & Kashmir and Ladakh High Court stayed the Income Tax order passed beyond the statutory period. The court disposed of the petition as the respondent submitted that in the event the petitioner initiates the necessary proceedings, as indicated earlier or file an appeal, within two weeks, the order dated August 28, 2020 shall remain operative till the decision of the said appeal/proceedings.
Get a Handbook on TDS Including TCS as Amended up to Finance Act 2024, Click Here
The petitioner Sanju Aggarwal submitted that Assessing Officer (Centralised Processing Centre/Income Tax Department) had passed the order dated September 6, 2017 under Section 154 of the Income Tax Act, rectifying the order dated June 30, 2010 passed under Section 143(1) of the Act.
The petitioner assailed the said order in an appeal before the Commissioner of Income Tax (Appeals) Jammu, primarily, on the ground that the order dated September 6, 2017 (ibid) was apparently erroneous for it was passed beyond the statutory period of four years as specified in Section 154(7) of the Act. Further, the Assessing Officer seriously erred in not affording any opportunity to the assessee either.
It was submitted that the Commissioner of Income Tax (Appeals) J&K, upon consideration of the matter vide order dated January 23, 2019, allowed the appeal and directed the Assessing Officer (AO) to verify from the system about the correctness of the claim of the appellant/petitioner and allow the claim of TDS, if found in order:
Despite the order dated January 23, 2019 the Assessing Officer has failed to comply therewith. And rather the petitioner has been served with a fresh demand for the assessment year 2010-11 on February 12, 2020.
When during the course of the hearing, the counsel for the parties have reached a consensus : that in the given circumstances, it would rather be expedient if the petition is disposed of to enable the petitioner to approach the Commissioner of Income Tax (Appeals) as regards her concerns and grievances by initiating appropriate proceedings.
Counsel for the petitioner submitted that since the petitioner has been pursuing the petition at hand since 2020, she might have to explain the delay that has occurred in the interregnum. The respondents fairly submit that as the matter was being diligently pursued by the petitioner before the Court since 2020, she is clearly entitled to the benefit envisaged under Section 14 of the Limitation Act.
Not only that, he submits that the Co-ordinate Bench vide order dated August 28, 2020, having found a primafacie case, had stayed the recovery that was sought to be made from the petitioner pursuant to the demand notice dated February 12, 2020.
Accordingly, he submits that in the event the petitioner initiates the necessary proceedings, as indicated earlier or file an appeal, within two weeks from today, the order dated August 28, 2020 shall remain operative till the decision of the said appeal/proceedings.
In the wake of the position sketched out above and in terms of the statements made by learned counsel for the parties, the Chief Justice Arun Palli and Justice Rajnesh Oswal disposed of.
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
