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2023 (1) TMI 1317 - HC - Income TaxStay of demand - petitioner has been directed to pay 20% of the outstanding demand - HELD THAT:- From a perusal of the impugned order it is seen that 1st respondent had followed instructions of the Central Board of Direct Taxes (‘CBDT’) to the effect that where outstanding demand is disputed before the appellate authority, the assessee has to pay 20% of the disputed demand. Accordingly, petitioner has been directed to pay 20% of the outstanding demand. We are afraid 1st respondent did not apply his mind while passing the order dated 16.01.2023. It appears to be a mechanical exercise of power. When the Income Tax authority exercises jurisdiction u/s 220(6) he exercises quasi-judicial powers. While exercising quasi-judicial powers, the authority is not bound or confined by departmental instructions. This position has been well settled in Principal Commissioner of Income Tax v. LG Electronics India Pvt. Ltd [2018 (7) TMI 1905 - SC ORDER] That being the position, we set aside the order and remand the matter back to the 1st respondent for passing a fresh order in accordance with law after giving due opportunity of hearing to the petitioner. This shall be done within a period of six (06) weeks from the date of receipt of a copy of this order. Till the aforesaid period of six (06) weeks, respondents are directed not to take coercive steps for realizing the outstanding demand for the assessment year 2017-18.
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