2019 (8) TMI 57 - HC - Income Tax

Stay of recovery - directions to Petitioner to deposit 20% of the disputed tax pending Appeal against the order of the assessment subject to which the remaining recovery would stand stayed - HELD THAT - As appears from the record that in response to the notice of reassessment the Petitioner had not produced the documents or reply during pendency of such proceedings. The Assessing Officer therefore passed the ex-parte assessment order. He has imposed the tax of Rs. 42 Lacs (round off) 20% of which would come to close to Rs. 8 Lacs. Thus the Petitioner is required to deposit the sum of Rs. 8 Lacs subject to which the remaining tax recovery would stand stayed. Petitioner had received no consideration at the time of transfer of the tenancy of immovable commercial property of which he is the owner and that therefore no tax could have been demanded from him would be subject matter of the Appeal proceedings. This is not a ground for lifting the rigor of the requirement of deposit of 20% of the disputed tax pending appeal. The Petition is therefore dismissed.

Summary

The Bombay High Court dismissed the petition challenging the order to deposit 20% of disputed tax pending appeal. The petitioner failed to produce documents during reassessment, leading to an ex-parte assessment order imposing a tax of Rs. 42 Lacs. The petitioner is required to deposit Rs. 8 Lacs, and the remaining tax recovery is stayed. The ground of no consideration at the time of property transfer does not lift the deposit requirement. Petitioners can request early disposal of the appeal from the Commissioner.