Opportunity granted to rectify tax defaults with strict payment schedule and warning of recovery steps

The High Court granted the petitioner an opportunity to rectify defaults in payment of installments for outstanding tax dues. The Court directed specific payments to be made within stipulated timelines, warning of recovery steps if not complied with. The petitioner was given a final chance to adhere strictly to the payment schedule, with the prohibitory order suspended upon compliance. The Court disposed of the petition with no costs, subject to the Tribunal's decision in pending appeals, aiming to balance justice with the petitioner's obligations under the Income Tax Act.

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Issues:
1. Appeal before the Income Tax Appellate Tribunal for Assessment Years 2007-08 and 2008-09.
2. Rejection of application for stay of recovery proceedings.
3. Grant of installments by the Assistant Commissioner of Income Tax.
4. Default in payment of installments.
5. Court's decision on compliance and further opportunities for the petitioner.

Analysis:
1. The petitioner filed three appeals before the Income Tax Appellate Tribunal for Assessment Years 2007-08 and 2008-09, along with an appeal for Assessment Year 2008-09 regarding a penalty imposed under Section 271(1)(c) of the Income Tax Act, 1961. The Tribunal rejected the application for stay of recovery proceedings, leading to subsequent actions by the Assistant Commissioner of Income Tax.

2. The Assistant Commissioner granted installments to the petitioner after assessing the outstanding dues. Despite being granted installments payable between specific periods, the petitioner defaulted in making payments as per the agreed schedule. This led to the cancellation of the installment facility and subsequent rejection of the petitioner's application for stay of recovery proceedings.

3. The High Court noted that the petitioner had paid a total sum of a certain amount against the outstanding dues but had defaulted on subsequent installments. The Court, considering the ends of justice, granted the petitioner an opportunity to rectify the defaults by directing specific payments to be made within stipulated timelines.

4. The Court directed the petitioner to pay a specified amount for the defaults within a week and another due amount by a certain date. The petitioner was given a final chance to comply with the directions, with a warning that failure to do so would lead to the Revenue taking recovery steps. The Court emphasized strict adherence to the payment schedule without further extensions.

5. Upon compliance with the specified payments, the prohibitory order issued by the Department would remain suspended as long as the petitioner followed the payment schedule for outstanding dues. The Court disposed of the petition with no order as to costs, subject to the decision of the Tribunal in the pending appeals. The judgment aimed to balance the interests of justice with the petitioner's obligations under the Income Tax Act.

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