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2013 (5) TMI 667 - HC - Income Tax


Issues:
Challenge to the order passed by the Commissioner of Income Tax granting stay against the demand raised pursuant to the assessment order. Dispute over the amount of disputed and undisputed demand. Delay in the appeal process due to non-furnishing of comments by the Assessing Officer. Review of the stay arrangement by the Commissioner. Financial hardship faced by the petitioner in making payments as per the directions of the Commissioner.

Analysis:
The writ petition challenged the order passed by the Commissioner of Income Tax granting stay against the demand raised pursuant to the assessment order. The Commissioner had initially directed payment of the undisputed amount of Rs. 369 crores in two installments, but later, after the entire amount was disputed, directed the petitioner to pay the demand by way of installments of Rs. 80 crores each month. The petitioner argued financial inability to make such payments. The court modified the order, directing the petitioner to pay installments of Rs. 15 crores each month instead. The Commissioner of Income Tax (Appeals) was directed to dispose of the appeal positively within three months.

The dispute over the amount of disputed and undisputed demand arose during the proceedings. The Commissioner, in the initial order, had stayed the recovery of the disputed amount of Rs. 665 crores till a specified date and directed the petitioner to pay Rs. 30 crores more by a certain date. The petitioner raised concerns over delays in the appeal process due to the non-furnishing of comments by the Assessing Officer. The court directed the Commissioner to review the stay arrangement within two weeks and expedite the appeal process.

The Commissioner reviewed the matter and passed an order directing the petitioner to pay installments of Rs. 80 crores each month. The court, considering the financial hardship faced by the petitioner, modified the order to require payments of Rs. 15 crores each month. The Commissioner of Income Tax (Appeals) was instructed to dispose of the appeal within three months.

In conclusion, the court addressed the issues related to the stay order against the demand raised by the Commissioner of Income Tax, clarified the disputed and undisputed amounts, resolved delays in the appeal process, and provided directions to alleviate the financial burden on the petitioner while ensuring the timely disposal of the appeal.

 

 

 

 

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