Commercial Taxes - No recovery Action during time entitled for appeal
CAN a tax officer proceed to recover the demand made in an order when the assessee still has time to appeal?
Recently a Commercial Taxes assessee approached the High Court with such a problem. The Deputy Commissioner of Commercial Taxes issued a recovery notice to the banker of the assessee. Apprehending that recoveries would be made prematurely without the assessee's right to file an appeal having been exhausted, the assessee approached the High Court.
In the High Court, the Government Advocate submitted that no precipitative action would be taken if the assessee would file an appeal within the period prescribed for filing the appeal.