1966 (3) TMI 9 - HC - Income Tax

High Court dismisses writ appeal over tax recovery, upholding Income-tax Officer's discretion under section 220(6)

The High Court of Madras dismissed the writ appeal seeking a mandamus to stop tax recovery, emphasizing the Income-tax Officer's discretion under section ... Exercise of discretion under section 220(6) of the Income-tax Act, 1961 - treatment of the assessee as not being in default in respect of amount in dispute pending appeal - discretion coupled with a responsibility - requirement of consideration of relevant circumstances before ordering recoveryExercise of discretion under section 220(6) of the Income-tax Act, 1961 - discretion coupled with a responsibility - requirement of consideration of relevant circumstances before ordering recovery - Whether the Income-tax Officer, when an appeal is pending, may summarily refuse to treat the assessee as not being in default or is obliged to consider the request under section 220(6). - HELD THAT: - The Court held that the power vested in the Income-tax Officer by section 220(6) is not a bare or arbitrary power but is a discretion coupled with a responsibility. Consequently, where an assessee has preferred an appeal which is pending, the officer must take into account all relevant circumstances and the considerations urged by the assessee as to why he should be treated as not being in default in respect of the amount in dispute. The officer may not summarily reject such a request merely on the basis that the legislative power exists; instead the officer should apply his discretion after due consideration of the facts and submissions presented by the assessee. The Court declined to rule on the merits of the pending appeal and confined itself to directing that the assessee be permitted to place before the concerned officer the grounds for exercise of the discretion in his favour.The discretion under section 220(6) must be exercised after considering all relevant circumstances and cannot be summarily refused; the assessee should be allowed to place his grounds before the Income-tax Officer for appropriate consideration.Final Conclusion: Writ appeal dismissed; Court directed that the assessee be permitted to submit grounds to the Income-tax Officer for consideration under section 220(6), and emphasised that the officer's discretion to treat the assessee as not in default pending appeal is a responsibility requiring due consideration. The High Court of Madras dismissed the writ appeal seeking a mandamus to stop tax recovery, stating that the Income-tax Officer has discretion under section 220(6) of the Income-tax Act, 1961, to treat the assessee as not in default during an appeal. The court emphasized that this discretion is a responsibility and not merely a power, and the officer must consider all circumstances before making a decision. The appeal was dismissed.