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2020 (4) TMI 762 - HC - Income TaxRecovery proceedings - stay applications - Addition u/s 68 - genuineness of the transaction and creditworthiness of the investors/loan depositors - HELD THAT:- The present matter is not a case of mechanical reliance on circulars/office memorandums. It is a case where proof of identity of the loan depositors, capacity of the creditors to advance loans and genuineness of transaction is in serious dispute. Further, this Court finds that the stay application has been decided on merits and all the submissions made hereinabove by the petitioner have been considered by the statutory authorities below. Undoubtedly, as held by the Supreme Court in LG Electronics (India) Pvt. Ltd. [2018 (7) TMI 1905 - SC ORDER] it is open to the statutory authorities to grant relief to deposit an amount lesser than twenty per cent if the facts of the case so warrant. However, on the facts of the present case, as determined by the Assessing Officer, a prima facie case is not made out and such a relief is not warranted. Consequently, the present writ petition and application being bereft of merits are dismissed. However, respondent No. 3 is directed to decide the appeal filed by the petitioner within thirty days from the date the Lockdown ends.
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