Assessment Order

This query is : Resolved

Vivek Banginwar (Querist)
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19 February 2011 Good Morning Everybody.My Query is that,Assessing Officer passed the order against the assessee, who is educational institution & stands demand against him. Assessee filled an appeal before CIT Appeals. But AO has pressurised the assessee to pay the demand, even though he has filling an appeal.Sir if any provision for stayed the order till the finalized the appeal? & Let me know IT Dept can attached the property or Bank Account of Educational institution?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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19 February 2011 Move a stay before the CIT (Appeals).

Guest

Guest (Expert)

20 February 2011 Move the stay application to A.O. himself, then Addl. CIT and the CIT. As per IT Act, there is power of stay with A.O. himself only.

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Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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20 February 2011 Quriest says assessing officer is pressurising to pay the demand. Hence, though AO has the power to stay the demand,a favourable out come from AO can't be expected. That is why, I answered to move a stay before CIT (Appeals) on the following grounds.
1) The power of CIT(Appeals) is co-terminus with that of AO. In the IT Act,1961,power to stay is not vested with AO only.
2) An appeal is pending before the CIT (Appeals).

Guest

Guest (Expert)

20 February 2011 In the entire Incometax Act, 1961 there ios no provision for stay against demand except u/s 220(3) and therefore, CIT(Appeals) has no power to grant the stay. There is only administrative procedure for A.O./ Addl. CIT / CIT etc. for granting the stay. Morever,the power of CIT(Appeals) is not co-terminus with that of AO for each and every action & power. In the IT Act,1961,power to stay is only vested with AO and the ITAT and with none else.

Vivek Banginwar

Vivek Banginwar (Querist)
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21 February 2011 Sir the assessee is a Education Institution, can Dept attached the Bank A/c or Property of assessee. AO is Asst.CIT.

Guest

Guest (Expert)

22 February 2011 Yes, for recovery, such action can be taken.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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23 February 2011 Powers of CIT (Appeals) is co-terminus with that of Assessing officers, though there is no specific mention in the IT Act,1961. Courts have reiterated this time and again.
Mr. Moondra can refer the following decisions, among others, if he so wish to confirm the above observation.
1) Jute Corpn of India Ltd Vs. CIT (1991)AIR 241.
2) CIT Vs. Poddar Swadesh Udog Ltd (2007) GLR 97.
3)Bhavshakti Steel Mines P Ltd Vs.CIT, Delhi H.C Decision dated 16/12/2008.
4)Dy.CIT Vs. S L Theatres P ltd (2009) 312 ITR 95(Coch-Tri).

Therefore, CIT(Appeals) can stay the demand of tax on an appeal pending before him /her.

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Guest

Guest (Expert)

23 February 2011 I may be wrong but Warrier Sahab, Citation (2009) 312 ITR 95(Coch-Tri) does not seem to correct.. Sir, do you mean that CIT(A) has all the powers of A.O. including powers u/s 143(2) & 143(3) etc. ?