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2018 (5) TMI 589 - HC - Income TaxRequirement to deposit 20% of the disputed demand amount - Held that:- Order set-aside for the reason that no speaking order is passed by the authorities while directing the petitioner-assessee to deposit 20% of the demand amount, mechanically referring to CBDT instruction No.1914 dated 21-03-1996. In the light of the judgment of this Court in the case of Flipkart India (P.) Ltd.,(2017 (3) TMI 802 - KARNATAKA HIGH COURT), the Income Tax Officer i.e. the Assessing Authority has to examine the applicability of the instructions of Circular No.1914 in as much as whether the assessment is “unreasonably highpitched” or whether “any genuine hardship would be caused to the assessee” in case the assessee were required to deposit 20% of the disputed demand amount. Without any application of mind, the AA has demanded 20% of the demand amount while disposing of the said application. Surprisingly, though the review petition was filed before the Principal Commissioner of Income tax, Income Tax Officer has passed the order which is wholly without jurisdiction. - Matter is remitted to respondent No.1 to re- consider the application for stay in accordance with law in an expedite manner.
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