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2017 (8) TMI 1729 - DELHI HIGH COURTAppeal effect order - calling upon the Assessee to deposit “immediately now” a sum being the tax payable with reference to one of the issues that arose from the return filed by the Assessee - probability be required to deposit the entire demanded amount thus causing undue hardship and severe prejudice to the Petitioner particularly since the impugned order is on the face of it untenable in law. HELD THAT:- Court notices that the SCN and the impugned ‘appeal effect order’ both dated 26th July 2017 were despatched on the same day under despatch Nos. 264 and 265. The demand for AY 2009-10 was in fact quantified only by the ‘appeal effect order’ passed on that very day i.e., 26th July 2017. That sum could not therefore be said to have not been paid as of that date when clearly the appeal effect order was being despatched together with the SCN. When asked about this, Mr Jain, on instructions, states that the Income Tax Department will not give effect to the said SCN dated 26th July 2017 insofar as it proposes to initiate penalty proceedings against the Petitioner for alleged failure to pay the demand raised by the impugned ‘appeal effect order’ pertaining to AY 2009-10. The said statement is taken on record. As clarified that there may be other questions that may arise after pleadings are complete in the matter. The Court is satisfied, at the present stage, that there is a prima facie case in favour of the Petitioner for passing an ad interim order to the effect that no coercive steps should be taken against the Petitioner until further orders. The balance of convenience in passing such an interim order is in the circumstances also in favour of the Petitioner. Given the amount demanded from the Petitioner by the impugned ‘appeal effect order’, and the requirement that it should be paid ‘immediately now’ the Petitioner would be subjected to hardship and prejudice if such an interim order is not passed. For the aforementioned reasons, it is directed that till the next date of hearing no coercive steps shall be taken against the Petitioner. List on 21st August, 2017 at 2:15 p.m.
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