GURMEET SINGH (business) 22 March 2011

ITO going to tribunal against the assessee

I have appealed before the Commissioner (Appeal) of Income Tax being aggrieved by the Assessment order passed by the concerned ITO. i also had to deposit about 30% of the demand raised by the ITO under section 143(3) before my appeal date.

The appeal has been admitted and heard by the commissioner and it provided all the relief quashing the orders of the ITO.

now i realise that the Income Tax Act provides for preferring appeal either by the assessee or the Income Tax Department to prefer an appeal before the Tribunal, High Court and Supreme Court.

now if the ITO goes to the tribunal what happens to the 30% tax that i had deposited (supposed to be refunded after the appeal) ?and also has the ITO got the powers to force me to submit the remaining 70% of the original demand under section 143(3) till the tribunal case is cleared?

So I solicit all the valuable opinion in this matter.

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2 Replies

Rama chary Rachakonda (Secunderabad/Highcourt practice watsapp no.9989324294 ) 23 March 2011

Mr. Gurmeet Singh,

Section 263 (1) provides that the Commissioner may call for and examine the record of any proceeding under Income Tax Act, and if he considers that any order passed therein by the Assessing Officer is erroneous in so far as it is prejudicial to the interests of the revenue, he may, after giving the assessee an opportunity of being heard and after making or causing to be made such inquiry as he deems necessary, pass such order thereon as the circumstances of the case justify, including an order enhancing or modifying the assessment, or cancelling the assessment and directing a fresh assessment.

chandrashekar (-) 03 April 2011

If the Commissioner of Income tax (appeals) has allowed your appeal in full/ granted the releif that has been sought by you, then there is no need for you to file an appeal befoere the ITAT. However the Deopartment may file an appeal if the tax effect is more. However since you have gat relief from the order of Commissioner of Income Tax, the demand raised by the A.O.gets reduced. since the there is no demand the A.O. cannot ask to you pay any amount and has to refund the deposit of 30% tax deposited