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2014 (12) TMI 15 - HC - Income TaxOrder of DIT(E) issued u/s 220(6) under challenge Application of unconditional stay of demand of ₹ 961.92 Crores Assessee statutory authority established under the Mumbai Metropolitan Region Development Authority Act, 1974 - Held that:- The order of the AO disposing of the application for stay has in fact been passed in total defiance of the law - in UTI Mutual Fund v/s. ITO [2013 (3) TMI 350 - BOMBAY HIGH COURT] it has been held that where a strong prima facie case is made out, a direction to deposit would itself cause financial hardship - before the financial situation of an applicant can be considered, the authority has to first consider the prima facie case pleaded by the applicant and if the same is covered against the revenue in view of a decision of a superior forum, then the question of considering the issue of financial hardship is irrelevant. In Mumbai Metropolitian Region Development Authority Versus The Deputy Director of Income Tax (Exemption1( 1) & Others [2013 (11) TMI 1378 - BOMBAY HIGH COURT] the court ordered 25% of deposit out of the total tax demand - the assessee has raised the issue of it being an agent of the Government of the Maharashtra and its income not being taxable in view of Article 289 of the Constitution before the AO - an unconditional stay would be warranted, pending the disposal of the Appeal by the CIT(A) the assessee will not be treated as an assessee in default Stay granted.
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