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2014 (2) TMI 1122 - HC - Income TaxWaiver of pre-deposit - stay - Partial hearing of appeal before CIT(A) Application for unconditional stay of balance demand of tax rejected Held that:- There was considerable substance in the submissions made by the Petitioner that both the Assistant Commissioner of Income Tax and the Commissioner of Income Tax have ignored the parameters laid down in KEC International Limited Vs. B.R.Balkrishnan and others [2001 (3) TMI 32 - BOMBAY High Court] - It is apparent that neither the Assistant Commissioner of Income Tax nor the Commissioner of Income Tax has referred to the Petitioner's case nor has given some short prima facie reasons for requiring the Petitioner to deposit 50% of the tax liability - Prima facie, there appears to be substance in the Petitioner's contention that in view of specific provision for deduction of tax on account of brokerage being provided in Section 194H of the Act, the occasion to apply Section 194J of the Act would not arise. The Petitioner's alternative submission that if subbrokerage paid by the Petitioner to its holding company is considered excessive or unreasonable, then in that event, as in the earlier years the sub-brokerage paid @ 50% be allowed as an admissible expenditure - On that basis, the Petitioner would not be liable to pay anything more than about Rs.60.00 lakhs based on the detailed calculations given by the Petitioner thus, interim stay on recovery is granted during the pendency of appeal before the CIT(A) Decided in favour of Assessee.
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