Recovery of Demand by the ITO in case of Appeal Preferred against order.

[Haresh Raithatha]

Dear SIr

A demand of ₹ 1212910\- (Tax ₹ 670000+540000 Interest) for A.Y,. 2010-11 raised by the A.O as per order u/s 263. We have preferred an appeal against the order and paid ₹ 100520\- being 15% of Tax Amount as per order. The AO is insisting to pay 15% of Total amount i.e. Rs.181900\- (Income tax +Interest). He has attach my bank account for paying differencial of Rs/81417\-... Can He do so? Since the assesse is agreevied with Tax demand and preferred an apppeal. How the interest on Demand of Income tax can recover since the tax is also not accepted by the assessee...

PL advise

AI Summary

Taxpayer Challenges Bank Account Freeze Over Disputed Tax Demand; Considers Stay or Writ Petition Under Section 263 Pending Appeal. A taxpayer faced a tax demand of 1,212,910 for the assessment year 2010-11, consisting of 670,000 in tax and 540,000 in interest, following an order under section 263. An appeal was filed, and 15% of the tax amount, 100,520, was paid. The Assessing Officer insists on 15% of the total amount, 181,900, and has frozen the taxpayer's bank account for the 81,417 difference. The taxpayer seeks advice on whether this action is permissible. The response suggests that while the appeal is pending, the Assessing Officer cannot demand payment, and advises seeking a stay or filing a writ petition.