INCOME TAX ACT, 1961

Section 220

Recovery - Stay of demand - Assessee was directed to pay certain amount -

Assessee sought stay on the outstanding demand. The subject matter assessment years were 2003-04 to 2008-09. In respect of assessment years 2003-04 to 2007-08, those Tax Case Appeals were pending before this Court, where it was stated that orders have been reserved. Insofar as the assessment year 2008-09 was concerned, assessee had filed appeal before the First Appellate Authority and the said appeal was still pending. Revenue claimed that insofar as the assessment years 2003-04 to 2007-08 were concerned was that assessee was liable to pay balance tax amount apart from penalty out of the total amount of tax plus interest. Likewise, in respect of assessment year 2008-09, the claim of revenue was that, out of the total payment, assessee was liable to pay the balance sum after giving credit to certain payments made by assessee. Held: Interest of the both parties will be protected, if assessee was directed to pay a sum of Rs. 15,00,000 towards the assessment year 2008-09, without prejudice to their contention in the appeal before the First Appellate Authority for the purpose of lifting the garnishee orders. Accordingly, these Petitions were allowed and orders were set aside, subject to condition that the petitioner pays a sum of Rs. 15,00,000 towards assessment year 2008-09 within a period of four weeks

REFERRED :

FAVOUR : Directions issued

A.Y. :

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