INCOME TAX ACT, 1961

Section 220(6)

Recovery - Stay of demand - Severe financial crisis faced by assessee - Assessee failed to file any evidences/material to prove its submission

Assessee-company filed stay petition seeking stay of outstanding tax demand and interest thereon. It submitted that it was not in a position to pay such outstanding demand and interest, as it was facing severe financial crisis and was heading for liquidation. Held: Assessee did not file any evidences/material to prove that it was not in a position to pay any amount and was heading for liquidation. Further, no balance sheet/bank statements/other evidences to prove precarious financial position of the assessee was filed. Further, the assessee neither made out any prima facie case nor was able to show how balance of convenience was in its favour. Further, the assessee could not prove financial difficulties faced by it rather only bald statement was made that it was heading for liquidation. Therefore, no case whatsoever was made by assessee for stay of demand on all the grounds of prima facie case, balance of convenience, irreparable loss and financial difficulties and hence the stay petition stood dismissed.

REFERRED :

FAVOUR : Against the assessee

A.Y. :

SUBSCRIBE FOR FULL CONTENT