Arni Agri Producers Coop Marketing Society Limited Vs PCIT (Madras High Court)
The case of Arni Agri Producers Coop Marketing Society Limited Vs PCIT before the Madras High Court revolves around the imposition of a 20% remittance requirement for a stay application concerning a disputed tax demand. The judgment challenges the validity of this requirement as per CBDT’s Office Memo (Instr No.1914).
The petitioner, Arni Agri Producers Coop Marketing Society Limited, contested an assessment order dated 01.03.2023 for the assessment year 2018-19. Subsequently, they filed a statutory appeal and sought a stay on the order. However, the condition imposed for the stay was to remit 20% of the disputed tax demand.
The petitioner argued against this condition, citing their limited resources and the absence of evidence showcasing financial stringency, which the assessing authority failed to consider. They also highlighted their entitlement to deduction under Section 80P of the Income Tax Act and referenced a judgment by the Delhi High Court regarding the non-mandatory nature of the remittance requirement.
In response, the respondents, represented by Dr. B. Ramaswamy, contended that the impugned order was issued in accordance with the office memorandum dated 31.07.2016 and that the assessing authority appropriately exercised discretion.
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