Chand Jewellers Vs ITO (ITAT Amritsar)
The assessee, a partnership firm engaged in the jewellery business, filed a stay application under the first proviso to section 254(2A) of the Income Tax Act, 1961, seeking a stay on the demand raised for Assessment Year 2017–18. The application was linked to an appeal pending before the ITAT Amritsar (ITA No. 574/Asr/2025) against the order of the CIT(A), NFAC, Delhi, dated 10 June 2025.
The assessee had originally filed a return declaring total income of ₹1,52,910, which was later reassessed at ₹1.05 crore under section 147 read with section 144B, vide order dated 29 March 2022. Consequently, a total tax and interest demand of ₹1,28,42,328 was raised. Out of this, 20% of the demand—amounting to ₹25,68,465—was required to be deposited as per the first proviso to section 254(2A). The assessee had already deposited ₹6,50,000 pending the appeal before the first appellate authority and agreed to pay the remaining balance in compliance with statutory requirements.
During the hearing, the assessee’s representative submitted that paying the entire balance of ₹19,18,465 in cash would adversely impact the firm’s business fund flow. Therefore, a request was made to allow part payment in cash and the remaining amount through security. The Departmental Representative raised no objection to this request.
