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2019 (5) TMI 799 - HC - VAT and Sales TaxStay on collection of the disputed tax - Entertainment Tax Act, 1939 - rejection for application of stay - HELD THAT:- In this case, the petitioner is the Tourism Development Corporation wholly owned by the State of Andhra Pradesh. The period in respect of which tax has been levied, was a period when the State was a combined State. Even if the statutory appeals filed by the petitioner get rejected ultimately, the entire liability may have to be apportioned between the petitioner/Corporation and their counterpart in the State of Telangana. These issues have not been taken into account by the Additional Commissioner before rejecting the prayer for stay. Petitioner submitted that the petitioner/Corporation is running into huge losses. He has produced the Income Tax Returns for the financial years 2016-2017 and 2017-2018. They disclose that the petitioner/Corporation has been consistently incurring huge losses running into several crores of rupees. Therefore, undue hardship may be caused to the petitioner/Corporation, if the collection of the disputed tax is not stayed. Even if the statutory appeals are ultimately dismissed and the Assessment Order confirmed, the liability of the petitioner/Corporation may have to be shared by the Telangana Tourism Development Corporation - considering the due financial straits into which the petitioner is placed, some leniency should be shown to the petitioner. The Writ Petitions are allowed, setting aside the impugned Orders and granting stay of recovery of the disputed tax, subject to the condition that the petitioner deposits a sum of ₹ 10,00,000/-.
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