HC grants interim stay on tax recovery proceedings till disposal of stay application by CIT(A)

Section 226, read with section 250 of the Income-tax Act, 1961 - Collection and recovery of tax - Other modes of recovery [Stay/Attachment] - Assessing Officer passed assessment order raising demand - Assessee filed appeal before Commissioner (Appeals) - Pending said appeal, Assessing Officer initiated recovery proceedings and passed an order under section 226(3) attaching bank account of assessee calling upon bank to pay assessee's dues - Assessee filed application for granting stay - Whether Assessing Officer should not be allowed to withdraw any amount from assessee's bank account, till Commissioner (Appeals) decided assessee's stay application - Held, yes - Whether, however, attachment of bank account would continue till Commissioner (Appeals) would decide stay application - Held, yes [Para 5] [In favour of assessee]

Refer:[2014] 42 taxmann.com 279 (Bombay)
HIGH COURT OF BOMBAY
Nikhil Kelkar
v.
Income-tax Officer -11(3)(1