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2019 (6) TMI 252 - HC - Income TaxStay of demand - direction to the petitioner to make the payment of 20% of demand - HELD THAT - As submitted that the petitioner is passing through a very bad phase, which has resulted into financial crises and it is not possible for the petitioner to discharge the demand of ₹ 34, 65, 832/- at one go i. e. 20% of the outstanding demand of ₹ 1, 73, 29, 162/-. As directed by the Income Tax Officer, Nadiad vide its order dated 10. 05. 2019, the petitioner has deposited first installment of ₹ 5, 00, 000/-. He further submitted that the second installment of the same amount is falling due on 10. 06. 2019. Issue notice, returnable on 10th June, 2019. Direct service is permitted.
Issues:
1. High Pitched Assessment leading to financial burden on the petitioner. Analysis: The petitioner, through their learned Advocate, argued that the income assessed by the Income Tax Officer was significantly higher than the returned income, resulting in a "High Pitched Assessment." Reference was made to a judgment by the Hon'ble Apex Court emphasizing that administrative Circulars do not restrict the Commissioner's quasi-judicial authority. The petitioner highlighted the Apex Court's stance on granting deposit orders of amounts lower than 20% in individual cases pending appeal. The petitioner further contended that despite the Apex Court's observations, the respondent directed them to pay 20% of the demand for Assessment Year 2016-17, amounting to Rs. 34,65,832. Due to financial crises, the petitioner expressed inability to pay this amount in one go, as it constituted 20% of the total outstanding demand of Rs. 1,73,29,162. The petitioner had already deposited the first installment of Rs. 5,00,000 as per the Income Tax Officer's order, with the second installment of the same amount due on 10th June, 2019. The High Court issued notice for the matter to be heard on 10th June, 2019, allowing direct service. The petitioner's plea regarding the financial strain caused by the High Pitched Assessment and the demand for payment of 20% of the outstanding amount was acknowledged, setting the stage for a detailed examination of the case during the upcoming hearing.
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