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The Tax Publishers2020 TaxPub(DT) 3214 (Tela-HC) INCOME TAX ACT, 1961
Section 220(6)
Since only 20% of disputed tax was demanded from assessee as a condition for granting stay of recovery of the demand raised vide an assessment order, thus, there was no requirement to interfere with the quantum of tax to be deposited, i.e., 20% of the disputed tax; however, in view of the financial difficulties being faced by the assessee, the assessee was granted four more weeks to comply with the payment of 20% of the disputed tax.
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Recovery - Stay of demand - 20% of disputed tax demanded as a condition for stay -
Revenue granted stay of recovery of demand raised vide an assessment order and directed assessee-company to pay 20% of tax demand in view of the financial difficulties being faced by the assessee. Aggrieved, assessee filed an instant writ petition. It contended that the assessment order was itself passed on the last day on which the assessment was to be completed; that there were several errors in the said order; that the financial position of the assessee was not good and accordingly, the impugned order for stay was to be set aside on the said grounds. Held: Keeping in mind the fact that only 20% of the tax demanded was asked to be paid by assessee as a condition for not enforcing the entire demanded amount as mentioned in the assessment order, there was no requirement to interfere with the quantum of tax to be deposited, i.e., 20% of the disputed tax. However, in view of the financial difficulties being faced by the assessee, the assessee was granted four more weeks to comply with the payment of 20% of the disputed tax.
REFERRED :
FAVOUR : Partly in favour of assessee.
A.Y. : 2017-18
IN THE TELANGANA HIGH COURT
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