TaxTMI 
TaxTMI 
2006 (3) TMI 109
X X X X Extracts X X X X
X X X X Extracts X X X X
....d recoverable from the petitioner pursuant to the assessment completed against it. In that view, therefore, the petition has indeed become infructuous as all other issues raised become academic once the demands stand satisfied and the petitioner has assailed the assessment order in appropriate proceedings before the appellate authority concerned. All the same, since the submissions at some length were made on behalf of both the parties as regards the procedure which the respondents have followed in making the recoveries, we may briefly recount the facts leading to the present controversy. Assessment for the assessment year 2004-05 was completed against the petitioner by the Assessing Officer by an order dated February 28, 2005. A demand no....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ce the notice period had not actually made any order or recorded any reason while reducing the period to 15 days. Mr. Jolly has, by reference to the record, argued that the rectifications mentioned earlier did not affect the validity of the demand notice issued against the petitioner on February 28, 2005. He urged that the calculation forms in which the amount of tax was computed was a part of the demand notice and that any rectification in the calculation did not affect the validity of the said notice nor did it require the issue of a fresh demand after rectification. He drew our attention to an order dated March 22, 2005, passed by the Joint Commissioner of Income-tax recording the reasons why the period of 30 days was reduced to 15 days....
X X X X Extracts X X X X
X X X X Extracts X X X X
....overies without affording to the petitioner-assessee the bare minimum time due to it for making the payment. It was urged that the respondents may even for the subsequent assessment years, adopt a similar hasty and slip-shod approach in making recovery by reducing the period for payment thereby causing prejudice to the petitioner. The legal position regarding the competence of the Assessing Officer to reduce the period for payment of the outstanding dues is clearly stated in section 220 of the Act. A plain reading of the proviso to section 220 makes it abundantly clear that while the assessing authority has the power to reduce the period for making the payment, such reduction must invariably be supported by valid reasons to be recorded in ....