2020 (3) TMI 125 - HC - Income Tax

Conditional stay to the demand raised - AO directed the Petitioner to pay 20% of the demand by way of five instalments as mentioned in the impugned order, pursuant to which recovery of the balance demand would be stayed till 30.09.2020 or to be reconsidered thereafter - HELD THAT - We are of the view that it would be in the interest of justice if the first appellate authority i.e. the Commissioner of Income Tax (Appeals) decides the appeal of the Petitioner expeditiously and till such time to keep in abeyance the demand raised in terms of the assessment order dated 27.12.2019. Accordingly, we direct that the appeal filed by the Petitioner be taken on board by the Commissioner of Income Tax (Appeals) and to decide the same within a period of eight weeks from the date of the receipt of an authenticated copy of this order and during the interregnum there shall be stay of the recovery of the demand pursuant to the assessment order dated 27.12.2019.

Summary

Issues:
1. Petition seeking quashing of the order granting conditional stay to income tax demand.
2. Appeal filed against the assessment order dated 27.12.2019 before the Commissioner of Income Tax (Appeals).
3. Request for expeditious decision on the appeal and stay on demand till appeal resolution.

Analysis:
1. The petitioner filed a petition under Article 226 seeking to quash the order dated 30.01.2020 passed by the Income Tax Officer, granting conditional stay to the demand raised. The assessment for the year 2017-18 resulted in a demand of &8377; 77,81,15,667.00. The Assessing Officer directed the petitioner to pay 20% of the demand by instalments, with recovery of the balance demand stayed till a specified date. The court, after hearing both parties, directed the appeal filed by the petitioner to be decided expeditiously by the Commissioner of Income Tax (Appeals) and ordered a stay on recovery of the demand till the appeal resolution.

2. The petitioner had preferred an appeal before the Commissioner of Income Tax (Appeals) against the assessment order dated 27.12.2019. The court, upon considering the submissions of both counsels, emphasized the need for the first appellate authority to promptly decide the petitioner's appeal. It directed the Commissioner to take up the appeal within eight weeks from the receipt of the court's order and ordered a stay on the recovery of the demand until the appeal resolution. The writ petition was disposed of in accordance with these directions.

3. The court, after hearing the arguments of both parties, held that it would be in the interest of justice for the Commissioner of Income Tax (Appeals) to decide the petitioner's appeal expeditiously. It directed the Commissioner to decide the appeal within eight weeks from the date of receipt of the court's order. During this period, a stay was ordered on the recovery of the demand pursuant to the assessment order dated 27.12.2019. The court's decision aimed to ensure a timely resolution of the appeal and provide relief to the petitioner by staying the demand recovery until the appeal process was completed.