Tax Dispute: Petition Dismissed, Recovery Stayed 60 Days; Apply for Stay, Pre-deposit, and Expedited Appeal in 30 Days.

The HC dismissed the writ petition challenging the assessment order but allowed the petitioner to seek relief through an application for stay of recovery proceedings and pre-deposit relief within thirty days. Recovery proceedings were stayed for sixty days to enable the petitioner to approach the authorities. The court also permitted the petitioner to apply for an expedited appeal hearing. The decision emphasized the necessity of following procedural requirements, including pre-deposit, before pursuing remedies in tax disputes.

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Issues:
The petitioner challenged the impugned assessment order dated 16.12.2019 and filed a Statutory Appeal before the CIT Appeals on 02.01.2020. The petitioner has now been issued a notice under section 272A(1)(d) of the Income Tax Act, 1961.

Impugned Assessment Order and Natural Justice:
The petitioner contended that the impugned Assessment order was passed without considering the reply to a prior notice dated 12.12.2019. The petitioner raised a specific plea regarding the violation of principles of natural justice in the appeal.

Dual Remedy and Pre-deposit Requirement:
The respondent argued that the petitioner cannot seek dual remedies against the same Assessment order by approaching both the High Court and the Appellate Commissioner. It was submitted that the petitioner must pre-deposit the amount as per circulars/Notifications issued under Section 119 of the Income Tax Act, 1961.

Stay of Recovery Proceedings and Pre-deposit Relief:
The court considered the arguments from both sides and cited the decision of the Hon'ble Supreme Court in LG Electronics India Pvt Ltd Vs. The State of Tamil Nadu and others, which empowers the Authority to grant relief in pre-deposit cases. The court dismissed the writ petition but allowed the petitioner to file an application for stay of recovery proceedings and pre-deposit relief within thirty days, with recovery proceedings being kept in abeyance for sixty days to facilitate the petitioner's approach to the authorities. The petitioner was also given the option to file an application for an out-of-turn appeal hearing.

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