|
The Tax Publishers2020 TaxPub(DT) 1729 (Mad-HC) : (2020) 428 ITR 0505 : (2020) 272 TAXMAN 0548 INCOME TAX ACT, 1961
Section 226(3)
Notwithstanding that assessee might not have specifically invoked three parameters for grant of stay, it was incumbent upon AO to examine existence of a prima facie case as well as call upon assessee to demonstrate financial stringency, if any and to arrive at the balance of convenience in the matter. In the instant case impugned order did not deal with these aspects, hence, impugned order was set aside and AO was directed to reconsider stay application filed by assessee. Attachment if any would stand lifted forthwith.
|
Recovery - Rejection of stay application - AO did not consider existence of a prima facie case, financial stringency and balance of convenience -
Assessment was stated to be in appeal before CIT(A) AO in the meantime, disposed stay application. On the ground of assessee's failure to pay 20% of total tax demand. Also, AO directed initiation of necessary IT recovery proceedings along with interest under section 220(2) and penalty undr section 221. In case of failure in remitting entire demand on or before given date. Assessee challenged this by way of writ petition. Held: Notwithstanding that assessee might not have specifically invoked three parameters for grant of stay, it was incumbent upon AO to examine existence of a prima facie case as well as call upon assessee to demonstrate financial stringency, if any and to arrive at the balance of convenience in the matter. In the instant case impugned order did not deal with these aspects, hence, impugned order was set aside and AO was directed to reconsider stay application filed by assessee. Attachment if any would stand lifted forthwith.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2017-18
SUBSCRIBE FOR FULL CONTENT
|