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2017 (4) TMI 63 - HC - Income TaxPre deposit - waiver of demand deposit - Held that:- In the present case, no doubt the AO did not in the first instance so refer the matter to the higher official; however, this court’s order had clearly stated that the issue with respect to such relief should be reconsidered. If the AO felt constrained by the terms of the circular, he could have sought a clarification; at worst, he could have referred the matter to the Commissioner, if he thought that he did not have the power to grant such relief. What he could not have done was to revisit the entire issue as to whether the relief to the extent of 85% waiver of demand deposit could be given. AO could not have revisited the matter, as if there were a fresh or open remand. The court notices that the AO – after rejecting the assessee’s claim for benefit (i.e beyond 85% waiver) directed payment of ₹ 203 crores after adjusting ₹ 27,93,09,100/- refund. This relief (of adjustment of ₹ 27,93,09,100/- refund) had not been considered in the earlier order. In these circumstances, it is held that the impugned order, to the extent it reviewed the previous order (dated 22nd February, 2017) cannot be sustained. The relief granted (i.e adjustment of refund amount of ₹ 27,93,09,100/-) is, however, upheld. Accordingly, the impugned order, to the extent it reviewed the previous order of 22nd February 2017 and directed payments of ₹ 62,71,95,920/- is set aside. However, to the extent that it granted relief under Para (E) of the instruction (which the AO was within his rights to grant in terms of the remand) is upheld. Therefore, the assessee is directed to deposit the balance amount, i.e. ₹ 34,78,86,820/- (Rs. 62,71,95,920/- minus ₹ 27,93,09,100/-) within two weeks, which would be sufficient compliance of the orders.
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