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2019 (4) TMI 973 - HC - Income TaxStay of recoveries - reducing the condition of deposit 20% imposed by the department - Pr . CIT directed to deposit 20% of the disputed tax to enable the Petitioner to enjoy the stay against the recoveries - HELD THAT:- We find that the Petitioner has some prima facie grounds against the order of assessment. The question would be, once the AO makes additions to the income of the Petitioner by applying formula of gross profit rate shown by the Petitioner in last few years, could the AO thereafter make further additions on individual grounds? Would such additions not to be telescoped in the gross profit rate adopted by the Assessing Officer? These are the grounds, which we are sure, the Petitioner would raise about before the Commissioner (Appeals) and the Commissioner (Appeals) would take a view in accordance with the law. Taking into account asking the Petitioner to deposit 10% of the disputed tax pending the Appeal, would serve the purpose of justice. Subject to Petitioner fulfilling such condition, further recoveries be stayed till the Appeal is disposed of by the Appellate authority. Petitioner shall deposit further amount before the Income Tax authorities latest by 15/04/2019, so as to make the total deposit with the department (inclusive of 4.5 lakhs already deposited) of 10% of the disputed tax demand.Upon the Petitioner fulfilling such condition, the further recoveries would be stayed. Petitioner stated that the Petitioner’s Bank account has sufficient funds to fulfill said condition of deposit. We permit the department to withdraw such amount from the account that would meet with the above condition of deposit of 10% with intimation to the Petitioner and thereafter forthwith release both the bank accounts from the attachment.
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