HASMUKHLAL BAGDIYA Vs. ASSISTANT COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS order shall also govern the disposal of M. P. No. 1416 of 1991 (Praveen Kumar Bagadiya v. Asst. CIT).

(2.) BY this petition under articles 226 and 227 of the Constitution of India, the petitioner-assessee has sought a suitable writ, direction or order for quashing annexure P-9 dated July 10, 1991, whereby the Assessing Officer-respondent No. 1 has rejected the assessee's application under Section 220(6) of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), without hearing the petitioner-assessee and for restraining respondent No. 1 from enforcing the demand which is challenged in appeal before respondent No. 2, Commissioner of Income-tax (Appeals), vide Appeal Memo (Annexure P-2A) dated April 21, 1990. Further, the petitioner also sought an order restraining respondent No. 1 from enforcing the bank guarantees (annexures P-4 and P-5) dated March 30, 1991, and June 7, 1991, respectively, during the pendency of this petition.

(3.) AFTER elaborate proceedings under Section 132(5) of the Act, an order was passed on March 28, 1988, estimating the amount of tax on income so estimated, determining the amount of interest payable and the amount of penalty imposable and specifying the amount that would be recovered to satisfy the existing liability.