2023 (12) TMI 1356 - HC - Income Tax

Conditional stay order - petitioner has been directed to pay of 20% of the total tax demand raised - Not only the conditional stay on payment of 20% has been granted but the petitioner has also been given facility of payment of 20% in seven equal installments. HELD THAT - Petitioner has submitted that the assessment orders after survey under Section 133A of the Income Tax Act had been finalized merely on the basis of the statements of the Director and Managing Director who had retracted later on. This submission does not appear to be correct. The assessment order would disclose that not only the statements of the Director and Managing Director were taken into consideration but the other incriminating material including the excel sheets and digital datas maintained in the computers and laptops had also been examined before adding the undisclosed income to the returned income of the petitioner. Therefore, no much substance in the present writ petition that the merit of the assessment orders have not been considered while passing the impugned Ext.P5 order granting conditional stay. The present writ petition is dismissed. The petitioner was granted time to pay the first instalment on or before 25.09.2023, the said time is extended to 30.12.2023 and the last and final installment has to be paid on or before 30.06.2024. Needless to say that the observation made herein will not prejudice the appellate authority to consider the case of the petitioner on merit.

Summary

The High Court of Kerala dismissed the writ petition challenging the conditional stay order requiring the petitioner to pay 20% of the total tax demand in installments. The court found that the assessment orders were based on incriminating material, and the petition lacked merit. The petitioner was granted an extension to pay the installments by specific dates, with a reminder that the appellate authority could still review the case on merit.