20% Pre-Deposit Not Mandatory – Stay Orders Must Be Judicious: Madras HC

Retnaraj Joanitta Vs CIT (Appeals) (Madras High Court) 20% Pre-Deposit Not Sacrosanct & Not Mandatory – CBDT Circular Can’t Tie Quasi-Judicial Hands – Madras HC; Stay of Demand Must Be Judicious, Not Mechanical – Madras HC Strikes Down 20% Pre-Deposit Petitioner challenged recovery proceedings initiated u/s 220(6). An assessment order dated 14.05.2025 for AY 2020-21 had created a disputed demand. While the appeal was pending before CIT(A), the ITO insisted on a pre-deposit of 20% of the disputed tax, citing CBDT’s Circular dated 31.07.2017. Petitioner argued that such insist...