INCOME TAX ACT, 1961

Section 220

Recovery - Stay of demand - Condition to pre-deposit of demand, whether justified during pending of appeal -

Assessee challenged the interim order passed by CIT(A) insisting upon part payment of the disputed tax amount, pending disposal of the appeals. Single Judge while disposing the writ petitions, had limited the payment. In the instant writ appeal challenge was made to the Single Judge order. Case of assessee-bank was that the issue was decided by Full Bench judgment in The Mavilayi Service Co-operative Bank Ltd., wherein it was held that appellate authority can only remand the matter to the assessing authority for conducting a fresh enquiry with respect to the nature of the activities of the banks. Held: Assessee contended that the insistence for making payment of any portion of the amount under demand, pending disposal of the appeal, might cause hardships and prejudices. Considering peculiar aspect involved touching the merits in the appeals based on the Full Bench decision mentioned above, the insistence for payment of a portion, as a condition for granting stay, need not be made in the case of assessee.

Followed:The Mavilayi Service Co-operative Bank Ltd. v. CIT [ITA Nos. 97 & 135 of 2016, 3, 11, 12, 22, 25, 26, 32, 33, 55, 68, 69 & 72-76 of 2017, dt. 19-3-2019] : 2019 (2) KHC 287 : 2019 TaxPub(DT) 4909 (Ker-HC)

REFERRED :

FAVOUR : In assessee's favour.

A.Y. :

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