CONSTITUTION OF INDIA, 1950

Article 226

Writ - Maintainability - Stay of demand - Existence of alternative remedy by filing a review petition

Assessee filed a writ petition challenging the order passed by Revenue, whereby the assessee's application seeking stay of demand had been rejected and the assessee had been directed to deposit 20% of the outstanding demand as a condition to stay further demand. It was stated that the rejection of the assessee's application for the stay of demand with a requirement to pay minimum 20% of the outstanding demand so as to stay the balance demand was arbitrary and against the provisions of the Income Tax Act, 1961. In support of his submission, he relied on the Office Memorandum dt. 29-2-2016 read along with the Office Memorandum dt. 31-7-2017. Held: On perusal of the Office Memorandum dt. 29-2-2016 read along with the Office Memorandum dt. 31-7-2017 revealed that the assessee was having an alternative effective remedy by filing a review petition before the jurisdictional Administrative PCIT/CIT under Para 4(C) of the Office Memorandum dt. 29-2-2016. Accordingly, the instant writ petition was disposed of with liberty to the assessee to avail of the alternative effective remedy.

REFERRED :

FAVOUR : Petition disposed of

A.Y. :

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