2013 (12) TMI 486 - HC - Income Tax

Stay of demand - Held that - It is open to the petitioner to appear before the Deputy Commissioner of Income Tax and satisfy him that an amount of Rs.1,48,79,983/- has been paid so far - The petitioner will pay to the revenue the balance amount so as to make it 50% of Rs.3,04,25,790/- within 10 days from today - Upon such deposit, the balance outstanding demand of 50% of the Rs.3,04,25,790/- will be stayed - The respondent not to take any coercive steps for recovery of the tax demand for a period of 10 days from today and on the petitioner paying in the aggregate 50% of the outstanding demand of Rs.3,04,25,790/- within 10 days from today, there shall be a stay for recovery of the balance of 50% of the tax - The petition is disposed off.

Issues:
Challenge to orders of Deputy Commissioner of Income Tax for assessment year 2009-10, demand of outstanding tax, rejection of application for stay, appeal before Commissioner of Income Tax (Appeals), attachment of bank account, payment made by the petitioner.

Analysis:

1. The petitioner challenged the orders dated 18 December 2012 and 20 December 2012 passed by the Deputy Commissioner of Income Tax Range 4(1), Mumbai regarding the demand of tax for assessment year 2009-10. The petitioner had sought a stay of the outstanding demand by depositing 50% of the amount, which was partially complied with by paying only Rs.1.24 crores. Subsequently, the application for stay of the rest of the demand was rejected, and the petitioner was directed to pay arrears of outstanding tax for assessment years 2009-10 and 2010-11. The petitioner's bank account was attached due to non-payment, leading to further payment of Rs.15.00 lacs. The total amount paid by the petitioner was Rs.1,48,79,983, including interest.

2. The petitioner's appeal for assessment year 2009-10 was already heard by the Commissioner of Income Tax (Appeals) but was awaiting the passing of an appellable order. The petitioner's counsel highlighted that the petitioner had paid Rs.1,33,79,983 before filing the writ petition on 20 December 2012, and an additional Rs.15,00,000 on 22 November 2013, totaling Rs.1,48,72,983. The court directed the petitioner to appear before the Deputy Commissioner of Income Tax and demonstrate that Rs.1,48,79,983 had been paid so far. The petitioner was instructed to pay the balance amount to make it 50% of the total outstanding demand within 10 days. Upon such deposit, the balance of the outstanding demand would be stayed, and the respondent was prohibited from taking coercive steps for recovery for 10 days. Once the petitioner paid 50% of the outstanding demand within the stipulated time, there would be a stay for the recovery of the remaining 50% of the tax.

3. In conclusion, the petition was disposed of based on the payments made by the petitioner and the directions provided by the court regarding the remaining outstanding tax demand for assessment year 2009-10. The court's decision aimed to ensure compliance with the payment terms and to provide relief to the petitioner in terms of the recovery of the tax amount.

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