INCOME TAX ACT, 1961

Section 220(2)

Recovery - Stay of demand - Assessee required to pay 20% of total disputed demand -

This petition was filed for a Mandamus seeking for a direction to authority to dispose of assessee's appeal within a time frame to be fixed by this Court. It was the contention of the petitioner that aggrieved by an assessment order passed, assessee had preferred the statutory appeal before authority. It was his contention that they had also filed a stay application seeking for stay of assessment order. However, according to petitioner, the said application was returned on ground that assessee was required to pay 20% of total disputed demand as per CBDT O.M. Circulars. Held: Admittedly, it was the case of petitioner that stay application filed for seeking of the stay of assessment order passed by AO had already been returned on the ground that the petitioner will have to pay 20% of the disputed tax amount. In such circumstances, there was merit in the grievance raised by assessee in this Petition. This Court directed authority to dispose of the statutory appeal filed by assessee aggrieved by the assessment order passed by Revenue within a period of six weeks after affording sufficient opportunity to assessee in the said proceedings on merits and in accordance with law.

REFERRED :

FAVOUR : Directions issued.

A.Y. :

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