CONSTITUTION OF INDIA, 1950

Article 226 Section 220

Stay of demand - Direction to petitions to deposit 20% of demand - Non speaking order of PCIT -

The petitioner was aggrieved by the Order passed by Pr. CIT rejecting his application for stay without the minimum deposit of 20% of demand. Though PCIT rejected the petitioner's application by an Order, she has permitted the petitioner to deposit the minimum of 20 per cent. of the demand in two instalments with the first 10 per cent. of the demand being payable immediately, and the balance demand on or before 25-3-2020. Petitioner's grievance was that PCIT rejected the petitioner's application for stay without the minimum deposit of 20 per cent. Held: It was incumbent on Pr. CIT to decide on the application for stay considering two questions, viz., whether the assessment is unreasonably high-pitched and whether the petitioner would be put to genuine hardship because of such assessment. However, in the present case, PCIT's order was a non-speaking order without considering either the question of high-pitched assessment or the genuine hardship to the petitioner. Therefore, order would have to be quashed on this limited ground and petitioner's application restored/remanded for reconsideration. Petition was partly allowed quashing the Order restoring the petitioner's application for stay for reconsideration requiring the petitioner to appear before Pr. CIT without further notice.

REFERRED : Flipkart India (P) Ltd. v. Asst. CIT (2017) 396 ITR 551 (Karn-HC) : 2017 TaxPub(DT) 650 (Karn-HC).

FAVOUR : Partly in favour of assessee

A.Y. :

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