https://www.taxtmi.com/caselaws?id=290133 The High Court considered whether the Income-tax Officer's discretion under Section 45 to treat an assessee as not in default pending appeal could, in the circumstances, require suspension of recovery. It held that where the assessee had filed an appeal raising substantial questions of fact and law, and related firms were assessed protectively so that the revenue was already safeguarded, the discretion could not be exercised arbitrarily or capriciously. In such a case, the discretion was coupled with a duty to grant extension of time and forbear enforcement of the demand until the appeal was decided. Interim protection against recovery was therefore secured pending disposal of the appeal. en-us Mon, 26 Feb 1951 00:00:00 +0530 Thu, 10 Sep 2020 13:04:03 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=290133 The High Court considered whether the Income-tax Officer's discretion under Section 45 to treat an assessee as not in default pending appeal could, in the circumstances, require suspension of recovery. It held that where the assessee had filed an appeal raising substantial questions of fact and law, and related firms were assessed protectively so that the revenue was already safeguarded, the discretion could not be exercised arbitrarily or capriciously. In such a case, the discretion was coupled with a duty to grant extension of time and forbear enforcement of the demand until the appeal was decided. Interim protection against recovery was therefore secured pending disposal of the appeal. Case-Laws Income Tax Mon, 26 Feb 1951 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=290133