Petitioner withdraws challenge against Income Tax notices after Revenue's assurance

The petitioner challenged notices under Section 226(3) of the Income-tax Act, 1961 despite a stay granted by the Income Tax Appellate Tribunal for an outstanding demand. The Revenue's counsel agreed to withdraw the notices and assured no recovery proceedings until the Tribunal's stay was in place. The petitioner's counsel then withdrew the petition, leading to its disposal without costs.

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Issues:
Challenge to notices under Section 226(3) of the Income-tax Act, 1961 regarding outstanding demand and stay granted by the Income Tax Appellate Tribunal.

Analysis:
The petition filed under Article 226 of the Constitution of India challenges the notices dated 16.3.2018 issued by the Assessing Officer under Section 226(3) of the Income-tax Act, 1961. The impugned notices were addressed to the petitioner's bankers, attaching the petitioner's accounts and directing the bankers to hand over the petitioner's amounts in their possession to the respondent. The impugned notices were issued despite the fact that the Income Tax Appellate Tribunal had extended the stay of recovery of the outstanding demand of Rs. 57.06 Crores for Assessment Year 2012-13. The petitioner's counsel argued that the notices were issued in respect of appeals pending before the Tribunal, and the Tribunal's order had extended the stay of recovery. In response, the counsel for the Revenue, on instructions of the Assessing Officer, stated that they would immediately withdraw the impugned notices and assured that no proceedings for recovery of the demand would be initiated until the stay granted by the Tribunal was in operation. The statement made by the Revenue's counsel was accepted. Consequently, the petitioner's senior counsel sought to withdraw the petition, and the petition was disposed of as withdrawn without any order as to costs.

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