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DELHI HIGH COURT
MANMOHAN, MANMEET PRITAM SINGH ARORA
Dr. BL Kapur Memorial Hospital – Appellant
Versus
Commissioner of Income Tax (TDS) Delhi – Respondent
JUDGMENT
Manmohan, J. (Oral):
CM APPL. 50982/2022 (for exemption) in W.P.(C) 16287/2022
CM APPL. 50984/2022 (for exemption) in W.P.(C) 16288/2022
Exemptions allowed, subject to all just exceptions.
Accordingly, the present applications are disposed of.
W.P.(C) 16287/2022 & CM APPL. 50981/2022
W.P.(C) 16288/2022 & CM APPls. 50983/2022
1. Present writ petitions have been filed challenging the orders dated 06th September, 2022 and 07th November, 2022, rejecting the applications filed by the petitioner and directing the petitioner to make payment to the extent of 20% of total tax demand arising under Section 201(1) of the Income Tax Act, 1961, (for short `the Act') for Assessment Years 2013-14 and 2014-15.
2. Learned senior counsel for the petitioner states that respondent No.2 passed orders dated 30th March, 2021 under Section 201(1)201(1A) of the Act holding the petitioner to be an `assessee-in-default' for short deduction of tax at source and total tax liability was computed at Rs.16,47,35,035/-and Rs.20,09,39,099/-for Assessment Years 2013-14 and 2014-15 respectively. He states that aggrieved by the orders dated 30th March, 2021, the petitioner filed appeals before respondent N
Mandatory payment of 20% of disputed tax under Section 201(1) can be relaxed based on case specifics, and non-reasoned administrative orders violate principles of procedural fairness.
It is open to tax authorities, on facts of individual cases, to grant stay against recovery of demand on deposit of a lesser amount than 20 per cent of disputed demand, pending disposal of appeal.
Tax authorities must provide reasoned decisions considering principles like prima facie case and balance of convenience, and can relax mandatory deposit requirements in certain cases.
The requirement of payment of twenty percent of disputed tax demand is not a pre-requisite for putting in abeyance recovery of demand pending first appeal in all cases. The tax authorities are eligib....
Tax authorities have discretion to grant stay on demand lesser than twenty percent, requiring consideration of a prima facie case, balance of convenience, and irreparable injury.
The requirement for 20% payment of a disputed tax demand for stay can be relaxed based on the circumstances of the case, as clarified by applicable legal precedents.
The court upheld that tax authorities must adhere to established guidelines on stay of demand, mandating refund of adjustments exceeding 20% of disputed tax during appeal.
Tax authorities must follow established procedures when collecting disputed amounts, ensuring fairness and adherence to guidelines for stay of demands pending appeal decisions.
The Assessing Officer shall normally grant stay of demand till disposal of the first appeal on payment of 20% of the disputed demand, and the respondent is entitled to seek pre-deposit of only 20% of....
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