Writ Petition Resolved: Taxpayer to Appeal and Pay 10% Disputed Tax; Court Stays Coercive Action Pending Appeal Outcome.

The HC disposed of the writ petition challenging the impugned order under the Income Tax Act, 1961, with the petitioner agreeing to file an appeal and pay 10% of the disputed tax. The petitioner must file the appeal within two weeks and make the payment within ten days. The court directed that no coercive action be taken by the AO until the appeal is resolved. The appellate authority is instructed to expedite and conclude the appeal within six months, independent of observations made in the writ petition.

---

---

Issues: Challenge to impugned order under Income Tax Act, 1961 for violation of natural justice

Analysis:
The petitioner challenged the impugned order dated 29th December, 2022 under Section 147/263 of the Income Tax Act, 1961, alleging a violation of the principle of natural justice. The petitioner was not allowed access to some inspection reports relied upon by the Assessing Officer in passing the reassessment order. The court acknowledged this issue but deemed it suitable for adjudication by the appellate authority since the impugned order was appellable.

Payment of disputed tax and filing of appeal:
The senior advocate for the petitioner was given liberty to consult the petitioner regarding the payment of 10% of the disputed tax and filing an appeal against the reassessment order. The petitioner expressed readiness to comply with these conditions, leading to the disposal of the writ petition.

Terms and conditions of disposal:
The court disposed of the writ petition with specific terms and conditions. The petitioner was directed to file an appeal against the impugned assessment order within two weeks and make a payment of 10% of the disputed tax within ten days. It was further stipulated that if the petitioner submitted the necessary documents to the Assessing Officer regarding the appeal and tax payment, no coercive action would be taken against the petitioner until the appeal's disposal. Additionally, the appellate authority was instructed to expedite the appeal process and dispose of it within six months, independent of any observations made in the writ petition.

Conclusion:
The writ petition challenging the impugned order under the Income Tax Act, 1961 was disposed of with the petitioner agreeing to file an appeal and make the required payment. The court provided specific terms and conditions for the disposal, emphasizing the timely filing of the appeal and the payment of the disputed tax while ensuring protection from coercive actions by the Assessing Officer.

---