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2020 (6) TMI 269 - HC - Income TaxStay of demand - mandating the appellate authorities to ask for deposit 20% of the amount for the purpose of entertaining the adjudication of the appeal - HELD THAT:- In Mavilayi Service Co-operative Bank Ltd. v. Commissioner of Income Tax [2019 (3) TMI 1580 - KERALA HIGH COURT]wherein for considering the appeal the demand of 20% as a condition precedent has been negated. Argument of the petitioner is in consonance with findings rendered in the judgment referred to above and reiterated by the Division Bench. AO or the appellate authority while exercising the power of appeal or stay of the assessment proceedings under section 226 of the Income Act 1961 are enjoined obligation to give regard and respect to the directions of the Hon'ble High Court. It would not be necessary that the payment of 20% can be dispensed with only if there is an order of the high court. The judgment of the Full Bench followed by the Division Bench has an enuring effect on all the authorities. There will be a direction to the 1st respondent to decide the appeal on merits within a period of six months, without asking for 20% of the demanded amount, after affording an opportunity of hearing to the petitioner and the revenue and pass a reasonable and speaking order.
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