Mediakind India Private Limited Vs Deputy Director of Income-tax (Karnataka High Court)
Karnataka High Court held that recovering amount in excess of 20% of total demand during pendency of appellate proceeding is impermissible in law. Accordingly, department directed to refund entire amount in excess of 20% with interest.
Facts- The proceedings have been initiated by the respondents against the petitioner, by issuance of show-cause notice dated 18.09.2023 u/s. 143B of the Income-tax Act, 1961. Respondent No.3 passed an assessment order dated 31.10.2023 resulting in total demand of Rs.10,36,84,140/- for the Assessment Year 2020-21. Aggrieved by the said order, the petitioner has preferred an appeal before CIT(A). In addition to thereto, on 21.12.2023, the petitioner has also filed an application before the 2nd respondent-Jurisdictional Assessing Officer seeking stay of recovery, pending disposal of the appeal.
Notably, at the time of filing the appeal, out of the total demand of Rs.10,36,80,858/-, the petitioner deposited 20% on 21.12.2023. It is the grievance of the petitioner that despite the petitioner having filed an appeal within the prescribed period and depositing 20% on 21.12.2023 for the purpose of prosecuting the appeal as well as the stay application, the respondents have recovered an additional sum of Rs.2,59,55,300/- which is impermissible in law and the same deserves to be refunded back to the petitioner.
