AO cannot demand 20% of disputed Tax mechanically without examining facts of case

Uthangarai Sri Vidya Mandir Educational and Social Welfare Trust Vs ACIT (Madras High Court)

In the present case, the officer proceeds to mechanically call upon the petitioner to remit 20% of the demand without examining the appropriateness of the direction to the facts and circumstances of the petitioners’ case. For this sole reason, Hon’ble High Court set-aside the impugned order.

FULL TEXT OF THE HIGH COURT ORDER / JUDGMENT

The impugned order dated 13.02.2019 has been passed under Section 220 (6) of the Income Tax Act, 1961 (in short “the Act”), and calls upon the petitioner to remit 20% of the disputed demand of Income tax as a pre-condition for the grant of stay of recovery.

2. Heard Mr.P.H.Aravind Pandian, learned Senior Counsel, appearing for Mr.Vasudevan, learned counsel appearing for the petitioner and Mr.A.P.Srinivas, learned Senior Standing Counsel appearing for the respondents.

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