Section 220 of the Income-tax Act, 1961 - Collection and recovery of tax

IT : Considering assessee's request that its business was not good and it was not in a position to pay 50 per cent of total demanded tax as directed by Assessing Officer, assessee was directed to pay 25 per cent of total demanded tax in two instalments
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[2014] 48 taxmann.com 353 (Madras)
HIGH COURT OF MADRAS
Smart Professional Services (P.) Ltd.
v.
Deputy Commissioner of Income-tax, Co. Circle VI(3)*
B. RAJENDRAN, J.
W.P. NO. 14951 OF 2014
M.P. NO. 1 OF 2014
JUNE  12, 2014
Section 220 of the Income-tax Act, 1961 - Collection and recovery of tax - When tax payable and when assessee deemed in default (Stay) - Assessment year 2011-12 - Assessee claimed that it was an investment company and during relevant assessment year, there was no trading of shares - However, Assessing Officer, without considering this fact, determined taxable turnover and demanded huge amount of tax - Pending appeal before Commissioner (Appeals), assessee filed application for stay of demand - Assessing Officer rejected stay application and directed assessee to pay 50 per cent of demand - Whether it is discretion of authority regarding demand of percentage to be deposited; however, taking into consideration assessee's request that its business was not good and it was not in a position to pay 50 per cent of demand as directed by Assessing Officer, assessee was to be directed to pay 25 per cent of demand in two instalments - Held, yes [Para 6] [Partly in favour of assessee]
R. Sivaraman for the Petitioner. T. Pramod Kumar Chopda for the Respondent.