1995 (7) TMI 39

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....g the amount of income-tax for the assessment year 1992-93 from the petitioner and for a direction to the Commissioner of Income-tax (Appeals) for disposal of the appeal forthwith. I have heard Sri Rakesh Kumar Agarwal learned counsel for the petitioner and Sri Rakesh Ranjan Agarwal for the opposite party and perused the material brought on record. The petitioner has filed a first appeal before the Commissioner of Income-tax (Appeals) at Muzaffarnagar, in respect of the assessment year 1992-93, whereby the income-tax liability of Rs. 31,41,142 was determined but before the disposal of the appeal, the assessing authority has initiated recovery proceedings for the said amount. The stay application against recovery proceedings filed by t....

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.... " .... where the income determined on assessment was substantially higher than the returned income, say, twice the latter amount or more, the collection of the tax in dispute should be held in abeyance till the decision on the appeals, provided there were no lapse on the part of the assessee. 3. The Board desires that the above observations may be brought to the notice of all the Income-tax Officers working under you and the powers of stay of recovery in such cases up to the stage of first appeal may be exercised by the Inspecting Assistant Commissioner/Commissioner of Income-tax. " This circular is also in consonance with the spirit of the provisions contained in sub-section (6) of section 220 of the Income-tax Act. According to....

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....not in a mood to stay recovery proceedings, even contrary to the circular of the Central Board of Direct Taxes, then they must dispose of the appeal without further delay and without taking any coercive action against the petitioner. For the purposes of disposal of this writ petition, it would be sufficient to say that in case the appeal is expeditiously disposed of, the recovery proceedings should not be pursued till disposal of the appeal. Learned standing counsel for the Department of Income-tax vehemently submitted that in case the recovery proceedings are directed to be kept in abeyance the appellant must be directed to furnish adequate security to cover up the amount of income-tax likely to be imposed as a result of the disposal of....