Pending rectification application can justify restraint on tax recovery until the statutory request is decided.

Recovery under a recovery certificate was restrained where the taxpayer's rectification application under section 154 remained pending before the tax authority and recovery proceedings had already begun with attachment of the bank account. The court held that protection was warranted to preserve the taxpayer's position until the statutory rectification request was decided, and directed that recovery not proceed meanwhile. The authority was also expected to decide the section 154 application expeditiously.

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Issues: Whether recovery pursuant to the recovery certificate should be stayed until disposal of the petitioner's pending application for rectification under section 154 of the Income-tax Act.

Analysis: The rectification application had already been filed and remained pending before the Assistant Commissioner of Income-tax, while the Tax Recovery Officer had commenced recovery and attached the petitioner's bank account. In these circumstances, protection was warranted to preserve the petitioner's position until the statutory application was decided.

Outcome: The Tax Recovery Officer was restrained from proceeding with recovery of the amount in question until disposal of the petitioner's application under section 154, and the authority was expected to decide that application expeditiously.

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