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TMI Blog2022 (2) TMI 1470X X X X Extracts X X X X X X X X Extracts X X X X ..... /72/93-ITCC is that mandatorily an assessee preferring any appeal before an Appellate Commissioner shall deposit 15% pending disposal of the first appeal. The aforesaid amount of 15% was later enhanced to 20% by a subsequent Office Memorandum dated 31.07.2017, bearing Reference F.No.404/72/93-ITCC. The circular also states that in a case where a stay of demand is granted by the AO on payment of 15% (now 20% amended) of the disputed demand and if the assessee is still aggrieved, he may approach the Jurisdictional Principal CIT for review of the decision of the Assessing Officer disposing an application. As decided in LG Electronics India Private Limited. [ 2018 (7) TMI 1905 - SC ORDER] where orders passed under 220 (6) of the Act are without ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Tax, Circle 1, Dindigul. By the impugned order, the second respondent has rejected the petition filed by the petitioner under Section 220 (6) of IT Act, 1961 in the wake of order, dated 18.07.2018 passed under Section 271D of the Income Tax Act, 1961, imposing a penalty of Rs.5.70 Crores on the petitioner. 2. In the impugned order reliance has placed on circular dated 31.07.2017 bearing reference F.No.404/72/93-ITCC. The only reason given in the impugned order is the failure of the petitioner to file evidence to substantiate financial hardship for non-payment of tax demanded and penalty that in terms of the above circular and there fore the petitioner has been directed to deposit 20% of the disputed amount. 3. The above circular amends an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pondent has imposed a sum of Rs.5.7 Crores as penalty on the petitioner under the aforesaid provision of the Income Tax Act, 1961. 7. It is submitted that the impugned order merely states that the petitioner has failed to file any document to establish financial hardship. It is therefore submitted that the impugned order is liable to be quashed. In this connection, reference was made to few decision of this Court and that of the Hon'ble Supreme Court. 8. I have considered the arguments advanced by the learned counsel for the petitioner and the learned counsel for the Income Tax Department. I have also perused the orders of this Court and that of the Honourable Supreme Court. Guidelines have been issued by the Central Board of Direct Tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... High Court is in favour of the assessee etc. the assessing officer shall refer the matter to the administrative Pr.CIT/CIT, who after considering all relevant facts shall decide the quantum/proportion of demand to be paid by the assessee as lump sum payment for granting a stay of the balance demand. (C) In a case where stay of demand is granted by the assessing officer on payment of 15% of the disputed demand and the assessee is still aggrieved, he may approach the jurisdictional administrative Pr. CIT/CIT for a review of the decision of the assessing officer. (D) The assessing officer shall dispose of a stay petition with in 2 weeks of filing of the petition. If a reference has been made to Pr. CIT/CIT under para 4 (B) above or a review p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h the Jurisdictional Principal CIT for review of the decision of the Assessing Officer disposing an application. 12. The Hon ble Supreme Court in Principal Commissioner of Income Tax Vs LG Electronics India Private Limited reported in (2018) 18 SCC 447 has held that where orders passed under 220 (6) of the Act are without any reason, the case can be remitted back for determination of financial hardship The Hon ble Supreme Court has also held that it is open to the authorities to examine the facts of an order directing deposit of an amount less than 20%, pending main appeal. 13. A reading of the impugned order indicates that it merely states that the petitioner has not brought any evidence of record to show financial hardship. However, what ..... X X X X Extracts X X X X X X X X Extracts X X X X
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