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2023 (5) TMI 476 - HC - Income TaxStay of demand - deposit of 20% of the outstanding demand - HELD THAT:- It is the stand of the petitioner, that expenses have also been disallowed by the AO, on the ground that there was no explanation, although, the petitioner claims that these very expenses were added back by the petitioner on its own, and therefore, no explanation was required. These are the aspects, which in our view, are inter alia referred to in the application for stay, which the concerned authority should have dealt with, while dealing with the petitioner’s application for grant of stay. AO has merely gone by the aforementioned CBDT instructions and granted stay, on deposit of 20% of the outstanding demand. In our opinion, if the demand is likely to get scaled down for the reasons adverted to in the petitioner’s application, these aspects will have to be taken into account by the concerned authority, while dealing with the application for stay. The concerned authority also needs to bear in mind, the dicta of the Supreme Court in PCIT vs. M/s LG Electronics India Pvt. Ltd. [2018 (7) TMI 1905 - SC ORDER]. Requirement to deposit 20% of the demand is not cast in stone. It can be scaled down in a given set of facts. We are inclined to set aside the order dated 08.04.2023. PCIT, as suggested by Mr Hossain, will carry out the de novo exercise, and take a decision on the application for stay preferred by the petitioner. PCIT will grant personal hearing to the authorised representative of the petitioner. In this behalf, the PCIT will issue notice to the petitioner, indicating the date and time of the hearing. PCIT will also pass a speaking order and deal with the assertions made by the petitioner in the stay application. Petitioner would like to make a concession, which is that the amount which is lying to the credit of the petitioner in the subject bank account could be remitted to the concerned authority, subject to the debit-freeze being lifted. Given this position, a direction is issued, to the effect that the entire amount which is available in the subject bank account shall stand remitted to the PCIT. In the event the amount presently available is remitted, for the moment, the debit-freeze ordered by the concerned authority shall stand lifted. We make it clear, that notwithstanding the fact, that the application for stay is required to be heard by the PCIT, the same would not come in the way of the NFAC hearing and disposing of the pending appeal preferred by the petitioner qua the assessment order.
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