2020 (12) TMI 355 - HC - Income Tax

Stay of demand - alternative effective remedy by filing a review petition - petitioner has been directed to deposit 20% of the outstanding demand as a condition to stay further demand - HELD THAT - A perusal of the aforesaid Office Memorandums reveal that the petitioner has an alternative effective remedy by filing a review petition before the jurisdictional Administrative Principal Commissioner of Income Tax / Commissioner of Income Tax under para 4(C) of the Office Memorandum dated 29th February, 2016. Present writ petition and pending applications are disposed of with liberty to the petitioner to avail of the alternative effective remedy.

Summary

Issues Involved:
Challenge to order rejecting stay of tax demand based on Income Tax Act, 1961 provisions and Office Memorandums.

Analysis:
The petitioner filed a writ petition challenging an order rejecting the stay of tax demand for Assessment Year 2017-18, which required depositing 20% of the outstanding demand to stay further demand. The petitioner argued that this condition was arbitrary and contrary to the Income Tax Act, 1961 provisions. The petitioner relied on Office Memorandums from 2016 and 2017 to support the argument.

Upon reviewing the Office Memorandums, the court found that the petitioner had an alternative effective remedy available by filing a review petition before the jurisdictional Administrative Principal Commissioner of Income Tax / Commissioner of Income Tax. The court disposed of the writ petition and pending applications, granting liberty to the petitioner to pursue the alternative remedy.

The court directed the petitioner to file a review petition within two weeks, and the Principal Commissioner, Income Tax, was instructed to decide on the review petition within four weeks in accordance with the law. The court ordered the immediate uploading of the order on the website and the forwarding of a copy to the petitioner's counsel via email.