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2014 (9) TMI 487 - ANDHRA PRADESH HIGH COURTWaiver of pre-deposit - Tribunal has directed the appellant to make pre-deposit of the basic tax component as well as 50% of the penalty under Sec. 78 and discrepancy of ₹ 12.00 lakhs between the petitioner’s own assessment of tax liability and the adjudicating authority’s determination. - Held that:- when the appeal is admitted for hearing and the order of the assessment is under scrutiny, unless the order of assessment reaches its finality, the question of initiation of penalty proceedings does not and cannot arise. - in view of insertion of the word or the Tribunal cannot ask to make pre-deposit in both at a time. The pre-deposit of the penalty amount will be required when the order of the penalty alone is under challenge. But if there is a composite order namely assessment order, tax component and also penalty order like here, direction for pre-deposit of any portion of the penalty amount would result in injustice as well as hardship. Under this circumstance, we are of the view that the direction for pre-deposit of penalty component of the order has to be deleted and is deleted and the rest portion of the order would remain. - Decided in favor of assessee.
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