INCOME TAX ACT, 1961

Section 220(6)

Recovery - Stay of demand - Advanced stage of appeal and bond fides of assessee in paying Rs. 3 crores, out of total demand of Rs. 59 crores for seven assessment years. -

AO pursuant to search assessments framed assessment under section 143(3) read with section 153A issued notice of demand for Rs. 59 crores. Assessee-trust carried assessment Orders in appeal. CIT(A) and while the appeal was pending, assessee trust moved stay petition before AO as AO was insisting on payment pursuant to the aforesaid assessment orders. AO disposed of the stay petition directing assessee to pay 20% of total demand raised with regard to the seven assessment years within a specified time-frame, inter alia, saying that it is a pre-condition based on certain instructions. Assessee challenged this by way of writ petition. With regard to the bona fides of writ petition, assessee pointed out that trust had already paid Rs. 3 crores from and out of total demand of Rs. 59 crores that had been made for all the seven assessment years together.Held: Considering the advanced stage of appeal and bona fides of assessee in paying Rs. 3 crores, assessee was directed to pay a further sum of Rs. 1.25 crores towards tax and interest due for 7 successive assessment years pursuant to impugned assessment order. within three months. Also assessee would provide one immovable property, having guideline value of Rs. 5 crores and market value of Rs. 7 crores as security in a form required by AO within a fortnight from date of receipt of order. CIT(A) would dispose of the seven appeals as expeditiously as possible and there would shall be no coercive action against distraint proceedings in any form subject to above conditions being complied with.

REFERRED :

FAVOUR : Partly in assessee's favour.

A.Y. :

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