HC denied stay on collection of Tax on failure of appellant to pay tax which was suo motto agreed to be paid by appellant

Kalaignar TV Private Limited Vs. Principal CIT (Madras High Court)

he assessee’s submissions were extracted in the impugned order, from which, it is seen that the assessee, in unequivocal terms, agreed that they are prepared to pay Rs. 50 lakhs by 25th of every month till the appeal before the Commissioner is decided. The assessee was confident that the appeal will be decided in their favour and that the tax paid will be refunded to them. These submissions were taken note of by the first respondent and an order to the said effect was passed permitting the petitioner to pay the arrears in monthly installments of Rs. 50 lakhs till 15% of the demand is collected. The Assessing Officer was directed to withdraw the attachment of the assessee’s bank accounts and debtors attachments. However, the petitioner did not keep up their commitment and they were able to pay only a sum of Rs. 3.5 Crores.

After the impugned order was passed, which is based on the concession given by the first respondent, once again, the petitioner approached the first respondent by way of representation dated 05.7.2017 expressing their financial difficulties and seeking stay of the collection of taxes. This representation is now pending. Subsequently, another representation has been given on 20.9.2017 seeking to pay Rs. 20 lakhs per month instead of Rs. 50 lakhs. However, this representation dated 20.9.2017 has been rejected by proceedings dated 03.10.2017. But, the proceedings dated 03.10.2017 has not been challenged by the petitioner.

Thus, this Court finds that when the petitioner had agreed to comply with the payment of disputed tax at the rate of Rs. 50 lakhs per month, they are bound to comply with such an undertaking. Now arguing before this Court pleading their financial incapacity or requesting this Court to examine the merits of the assessment is unsustainable, as this Court finds that there is no error in the impugned order.

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