From: editor@itatonline.org <itatonline.org@gmail.com>
Date: Thu, Apr 5, 2012 at 11:06 AM
Subject: Message from EGroup of SolapurCAs High Court Issues (Yet) Another Warning To AO On Tax Recovery Mania
To: editor@itatonline.org
The following important judgement is available for download at itatonline.org.
Rajasthani Sammelan Sarvoday vs. ADIT (Bombay High Court)
S. 220(6): AO reminded that he is not mere "tax gatherer" & cautioned to follow guidelines for recovery of tax
The assessee, a public charitable trust, filed a ROI returning Nil income. The AO passed a s. 143(3) assessment order holding that the assessee was not eligible for s. 11 exemption on the ground that the receipt of donations by it amounted to a commercial activity and assessed its total income at Rs. 3.51 crores. The assessee filed an application for stay u/s 220(6). Without dealing with the stay application, the AO directed the assessee to pay the demand within 3 days and threatened coercive proceedings in the event of failure. The assessee filed an application before the DIT who directed it to pay 50% of the demand by March 2012 and the balance in installments. No reasons were given on why the stay application was not acceded to. The assessee filed a Writ Petition to challenge the direction: HELD by the High Court:
Regards,
Editor,
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