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2019 (3) TMI 1270 - HC - Income TaxStay of demand - deposit of 15% OR 20% of the disputed amount - recovery proceedings - HELD THAT:- What prima facie emerges from the record is that, the Petitioner undisputedly has an arguable case on the three additions which the Assessing Officer has made. Prima facie case is one of the considerations which will weigh while imposing condition of deposit of disputed tax pending Appeal as held and observed by this Court in case of UTI Mutual Fund Vs. Income Tax Officer [2013 (3) TMI 350 - BOMBAY HIGH COURT]. In the CBDT Circular dated 29/02/2016 while providing that the Assessing Officer shall stay pending Appeal on deposit of 15% of the disputed amount, (which was later on revised to 20% by virtue of the circular in 2017, other conditions remained constant.) The circular also envisaged cases where such requirement can either be increased or decreased depending on facts of the case. Thus requirement of 20% deposit of tax pending the Appeal is not a rigid one and cannot be implemented in all cases, irrespective of relevant facts. Since the Appeal of the Petitioner is pending before the Appellate Commissioner, we would be well advised not to consider the Petitioner’s argument on merit of disallowances threadbare. Suffice to reiterate that the Petitioner has a prima facie case on such disputed issues. The Petitioner had already deposited advance tax of ₹ 11 Crores and TDS of ₹ 7,05,288/by the time of filing of the return. The Petitioner has deposited further sum of ₹ 1 Crore with the tax department. Impugned order passed by the Commissioner does not take into account the sum of ₹ 11,07,05,288/, perhaps due to oversight since it appears that the Petitioner may not have brought such facts to his notice. Be that as it may, whatsoever direction we may issue for depositing the tax pending appeal, this amount must be taken into consideration. ORDER - Petitioner shall deposit a further sum of ₹ 3 Crores with the Department latest by 30/03/2019. This shall, along with the amounts already deposited by the Petitioner represent roughly 15% of the basic tax demand. Subject to the Petitioner depositing the same, there shall be no further recovery of the tax and interest pursuant to the order of assessment till the Petitioner’s Appeal is disposed of by the Commissioner (A).
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