TMI Blog2023 (10) TMI 568X X X X Extracts X X X X X X X X Extracts X X X X ..... fits all along prior to the issuance of demand notice and even in the subsequent years as well, there does not seem to be any prejudice going to be caused if the stay application u/s 220(6) is decided in favour of the petitioner. Yet another fact which is more important to be appreciated is that though the appeal was filed as early as on 17.04.2021 and the rectification application also was filed on 20.03.2021, and both the rectification application and the appeal by now are still pending consideration or is undecided for more than 2 years. Under these circumstances, we are of the considered opinion that given the aforesaid factual matrix and also considering the status of the petitioner which is a charitable establishment with a chari ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d against the petitioner was subjected to challenge before the Appellate Authority. Pending the appeal, the petitioner moved an application under Section 220(6) of the Act seeking stay of the demand notice pending the appeal. It is this application under Section 220(6) of the Act which has been decided on 04.09.2023, whereby, the petitioner was directed to pay a sum of Rs.35,00,000/- before the Assessing Officer by 14.09.2023. Subject to the compliance of which, there shall be stay and effect of the operation of demand notice dated 19.03.2021 issued by the respondent No.4. 5. Immediately after the demand was raised against the petitioner, an application requesting for rectification was sent to the Assessing Officer by e-mail in terms of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an order of the Karnataka High Court in ITA 31 of 2023 dated 4 February 2013 taking the view that in a revenue matter an interim order should be passed only in the case of genuine financial hardship and not otherwise. With respect, the order of the Karnataka High Court cannot be read to mean that consideration of whether an assessee has made out a strong prima facie case for stay of enforcement of a demand is irrelevant. Nor is the law to the effect that the absent a case of financial hardship, no stay on the recovery of a demand can be granted even though a strong prima facie case is made out. In considering whether a stay of demand should be granted, the Court is duty bound to consider not merely the issue of financial hardship if any, b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oner s establishment is an educational and charitable society registered itself under Section 12A of the Act. It is relevant at this juncture to consider the fact that the Income Tax Department itself had issued a circular No.11 of 2008 dated 19.12.2008 whereby the definition of charitable purpose under Section 2(15) of the Act has been clarified which for ready reference is reproduced herein under: The newly inserted Proviso to Section 2(15) will not apply in respect of the first three limbs of section 2(15) i.e., relief of the poor, education or medical relief. Consequently, where the purpose of a trust or institution is relief of the poor, education or medical relief, it will constitute charitable purpose even if it incidentally i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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