2026 (5) TMI 1350

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....v.   For the Respondents: Mr. Prithu Dudhoria, Adv. Mr. Madhu Jana, Adv. Mr. Wahed Reja, Adv.   ORDER 1. The present writ petition is directed against recovery of the demand for the assessment year 2011-12 to the extent of Rs. 90,67,467/- during pendency of the appeal before the Commissioner of Income Tax (Appeals) by adjustment against refunds due to the petitioner for the asse....

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.... a case where the outstanding demand is disputed before Commissioner of Income Tax (Appeals), the Assessing Officer shall grant stay of demand till disposal of first appeal on payment of 15% of the disputed demand. The said rate has been subsequently revised to 20% by office memorandum dated 31.7.2017. 5. Despite the petitioner having deposited more than 50% of the disputed demand prior to 29.2....

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....6,950/- to make up 20% of the demands. The garnishee notices have been withdrawn on the same day as refund of Rs. 1,67,50,378/- for Assessment Year 2017-18 has already been adjusted against Assessment Year 2012-13 on 28.2.2020. 9. Thereafter on May 21, 2020, interest under section 220(2) of the Act for which demand was raised on October 30, 2017 has been recovered by way of adjustment against r....

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.... Whether the Assessing Officer's action of adjusting refunds aggregating Rs. 90,67,467/- and issuing garnishee notices under Section 226(3) of the Income Tax Act, 1961 for recovery of disputed demand for assessment year 2011-12 is illegal and contrary to binding CBDT office memorandum dated 29.2.2016 and 31.7.2017 when the petitioner has already deposited more than 50% of the demand and is entitle....