Recovery proceedings u/s 263 were challenged. The Tribunal...

Recovery proceedings u/s 263 were challenged. The Tribunal directed inquiries regarding the correctness of the valuation report, but these directions were allegedly not followed in the assessment order passed on remand. The High Court held that recovery should await the disposal of the appeal, as the demand was based on an assessment order passed prior to the Tribunal's order. 20% of the amounts had already been recovered, and no further recovery would be carried out based on the impugned assessment until the appeal is disposed of. If the assessment is set aside, the assessee would be entitled to a refund along with interest, either as per statute or the interest paid in the cash credit account, whichever is higher. If the assessment is upheld, the assessee would be saved from interest on the amount recovered during the intervening period. There was no need to direct a refund of the 20% already recovered.