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TMI Blog2024 (4) TMI 162X X X X Extracts X X X X X X X X Extracts X X X X ..... . W.P.(C) 2615/2024 1. The instant writ petition impugns the orders dated 26 May 2022 and 12 February 2024 passed by the Assistant and Principal Commissioners of Income Tax disposing of the application made under Section 220(6) of the Income Tax Act, 1961 Act. The application itself came to be made pursuant to the stand of the respondents that a demand of Rs. 132.58/- crores was outstanding. The aforesaid demand which stems from an order of assessment dated 08 April 2022 presently forms subject matter of challenge in an appeal which has been preferred before the Commissioner of Income Tax (Appeals) ["CIT(A)"]. 2. We note that the impugned orders are principally based on the instructions of the Central Board of Direct Tax ["CBDT"] as enca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oners of Income Tax to deal with factors such as prima facie case, balance of convenience and irreparable loss that may be caused. According to learned senior counsel, the respondents have proceeded to pass the impugned orders proceeding on the assumption that the Office Memorandum dated 31 July 2017 commands them to inevitably require a deposit of 20%. 5. Taking us briefly through the facts itself and insofar as they relate to the question of Long Term Capital Gains, Mr. Vohra pointed out that the subject immovable property was purchased for a total sale consideration of Rs.378/- crores. The value of the aforesaid property as per the stamp duty authorities was Rs.390/- crores. It was pointed out that the Assessing Officer AO referred the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in CIT v. LG Electronics India (P) Ltd. [CIT v. LG Electronics India (P) Ltd.(2018) 18 SCC 447] wherein it has been held that it is open to the tax authorities, on the facts of individual cases, to grant stay against recovery of demand on deposit of a lesser amount than 20 per cent of the disputed demand, pending disposal of appeal. xxx xxx xxx 9. Having heard learned counsel for the parties and having perused the two office memorandums in question, this Court is of the view that the requirement of payment of twenty per cent of disputed tax demand is not a prerequisite for putting in abeyance recovery of demand pending first appeal in all cases. The said precondition of deposit of twenty per cent of the demand can be relaxed in appropri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ken by the respondents against the petitioner in pursuance to the demands arising out of the impugned orders. With the aforesaid directions, the present writ petitions along with pending applications stand disposed of." 8. Opposing the grant of the reliefs as claimed, Mr. Agrawal submitted that while all the aforesaid aspects and which relate to "prima facie case" appear to have been alluded to in passing before the Assistant Commissioner, they were clearly not canvassed for the consideration of the Principal Commissioner. In view of the aforesaid, Mr. Agarwal contended that there would be no justification to interfere with or set aside the impugned orders based on a consideration of issues which had not even been pressed before the two au ..... X X X X Extracts X X X X X X X X Extracts X X X X
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