High Court eases payment terms for petitioner challenging assessment order, grants stay on tax recovery.

The Kerala High Court modified the payment terms in a case where a petitioner challenged an assessment order for the assessment year 2008-09. The Court found the direction to remit 50% of the amount burdensome and modified it to require the petitioner to pay 25% of the demand in two equal monthly installments. The Court granted a stay on the recovery of the remaining tax amount upon this payment, allowing the appeal to proceed without delay.

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Issues: Assessment order challenge, stay petition modification

In this judgment by Justice Antony Dominic of the Kerala High Court, the petitioner challenged an order of assessment for the assessment year 2008-09 by filing an appeal and a subsequent stay petition. The Court had directed the petitioner to remit 50% of the amount in five monthly installments. The petitioner filed a writ petition challenging this order.

Upon hearing both parties, the Court noted the contents of the assessment order and the petitioner's contentions in the appeal. The Court agreed that a strong prima facie case was made out by the petitioner. However, the Court found the direction to remit 50% of the amount to be too burdensome and decided to modify it. The Court directed the petitioner to pay 25% of the demand raised in two equal monthly installments - the first to be paid by 25.4.2012 and the second by 25.5.2012. Upon this payment, recovery of the remaining tax amount would be stayed, and the appeal would proceed without delay.

The Court disposed of the writ petition by modifying the payment terms as outlined above, providing relief to the petitioner while ensuring compliance with the tax obligations.

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