Delhi High court has rejected the recovery proceedings regarding the demand for income tax, for the problems that are in the favor of taxpayers through laying on the circular provided through the central board of direct taxes (CBDT).
The taxpayer, M/S Expeditors International of Washington, Inc mentioned that the question would be the basis of the mentioned order which has been issued arbitrarily according to the payment that would be rendered with respect to the additions which is in the favour of the applicant through the series of the decision directed through the tribunal in the applicant’s own case in the former 7 assessment years.
Read Also: Latest Official Tax (Income Tax + TDS) Updates by CBDT of India
Justice Manmohan and Justice Manmeet Pritam Singh Arora see that the Board provided Instruction No.1914 on 2nd February 1993 specifying the rules for the stay of demand. A rule which gives full stay would be when the demand in the dispute is concerned with the problems which one has been decided in the taxpayer’s favour through the appellate authority or court in the former times.
The high court specified that it would reverse the impugned order because it had categorically held that the recovery of demand against issues that had been decided in favour of the Assessee was wholly unwarranted, learning about the rules which CBDT has issued next after the judgment of the Supreme Court in Dunlop India Ltd.(supra), Rs 5 cr deposit, condition levied through the Tribunal vide impugned order on 14th July 2022 is set aside and the case has been rendered to be heard through the Tribunal at a faster pace. According to the mentioned direction, the current writ application and the pending application would get closed.
For the taxpayer, Mr. Deepak Chopra with Mr. Rohan Khare advocates has appeared.
