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2021 (10) TMI 246 - HC - Income TaxValidity of Notice of demand while stay order is in operation - willful breach of the interim order granted - contempt petition - interim stay is still in operation and in the meanwhile ACIT a issued notice of demand u/s 156 calling upon the petitioner to pay a sum of ₹ 1,33,57,360/- - HELD THAT:- The interim order passed by this Court is in respect of the assessment years 2013-14, 2014-15 and 2015-16. The rectification petitions are in respect of the assessment years 2016-17 and 2017-18. There is contest between the petitioner and the assessing authority as regards the applicability of a particular provision. When the issue is yet to be decided, the authority can very well take a stand in the meanwhile. Grant of interim order of stay will not amount to handing out a final decision on the particular issue. This Court had taken only a prima facie view and passed an interim order of stay. That will not tie the hands of the authority in reiterating their stand in the rectification proceedings. Even while granting 100% deduction under Section 80-1B (11C) of the Act, the appellate authority had given a finding that the petitioner had accepted an undisclosed income at the time of search. He had also offered to pay tax for the same. The penalty to the tune of 10% on the said undisclosed income is also worked out under clause (a) of sub-section (1) of Section 271AAB. The issuance of notice of demand on 23.03.2020 has nothing to do with the interim order granted by this Court. There is no violation of the order passed by this Court, let alone willful violation. The contemnor is discharged.
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