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2024 (5) TMI 1023 - DELHI HIGH COURTStay of demand - order requires the petitioner to deposit 20% of the outstanding demand as a pre-condition for according protection - Undue hardship - prima facie case - HELD THAT:- It is manifest that the AO has neither considered the prima facie merits of the challenge which stood raised by the writ petitioner and reiterated in its application for stay nor does it deal with the issue of undue hardship. The AO appears to have mechanically proceeded on the premise that since the petitioner had not made a pre-deposit of 20%, the application for stay of demand could not be considered. We note that while dealing with an identical view which was taken, we had in National Association of Software and Services Companies (NASSCOM) [2024 (3) TMI 773 - DELHI HIGH COURT] pre-deposit prescriptions placed by a statute, the principles enunciated therein would clearly be of relevance while examining the extent of the power that stands placed in the hands of the AO in terms of Section 220 (6) of the Act. In our considered opinion, the respondents have clearly erred in proceeding on the assumption that the application for consideration of outstanding demands being placed in abeyance could not have even been entertained without a 20% pre-deposit. The aforesaid stand as taken is thoroughly misconceived and wholly untenable in law. In view of the above, and in our considered opinion, there would appear to be no justification to retain the instant petition on our board. The ends of justice would in fact warrant the matter being remitted to the AO for considering the stay application moved by the writ petitioner afresh.
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