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2017 (9) TMI 838 - HC - Income TaxPre-deposit - Limit the requirement of predeposit pending petitioner's appeal against the order of assessment to 15% of the demand came to be rejected - rejecting the request of the petitioner was that he could not demonstrate any financial hardship - Held that:- Financial hardship need not be the sole ground on which increase in predeposit of 15% can be opposed. Further, if the petitioner was not interested in personal hearing, his written submissions could and should have been taken into consideration before deciding his request. As noted, the Assessing Officer in the present case proposed collection of amount pending appeal at the rate of 50% of the disputed demand. He also obtained approval of the Commissioner in terms of the said circular which must have been by citing his reasons. The Principal Commissioner or any other authority without disclosing such reasons which had weighed with the Assessing Officer and which had persuaded the Commissioner to authorize the Assessing Officer to increase the demand from the petitioner, confirmed the demand rejecting the petitioner's objections. This was in breach of principles of natural justice. When the petitioner had no idea on what grounds the authorities primafacie thought that the standard formula of granting stay on depositing 15% of the disputed tax demand would not be appropriate, it was incumbent upon the Revenue to put such reasons to the petitioner enabling the petitioner to meet with such grounds and oppose higher collection by raising suitable defense. In the result, impugned order dated 30.06.2017 is set aside. The Principal Commissioner shall pass a fresh order after first providing the reasons which had weighed with the Assessing Officer in proposing and the Principal Commissioner in approving collection of 50% of the demand pending appeal to the petitioner, giving him reasonable time to respond.
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