2014 (10) TMI 114 - HC - Income Tax

Stay application Imposition of condition Held that - Once it is admitted that at least 25% of the demand now made by the revenue is already with them in the form of an amount due by way of refund, the imposition of the condition does not appear to be proper - The fact that a refund of at least 25% of the total amount now demanded is due to the assessee has not been taken note of by the respondents - the writ petition is allowed and the condition imposed in the order for payment of 50% of the demand is set aside Stay granted.

Summary

Issues: Challenge to imposition of condition by Appellate Commissioner for grant of stay of assessment order.

Analysis:
The petitioner challenged the condition imposed by the Appellate Commissioner, requiring a deposit of 50% of the assessed amount. The demand was for Rs. 2,65,86,680, and the petitioner claimed to be due a refund of nearly Rs. 1.00 Crore. However, the Department stated the refund due was only about Rs. 60.00 Lakhs. The petitioner argued that since at least 25% of the demand was already with the Department as a refund, the condition was improper. The court agreed, noting that the fact that a refund of at least 25% of the total amount demanded was due to the petitioner had not been considered by the respondents.

The court allowed the writ petition, setting aside the condition for payment of 50% of the demand. However, it ordered that the petitioner could not claim the refund amount held by the Department until the appeal was disposed of. The judgment concluded by stating that no costs were awarded, and the related miscellaneous petition was closed.