Court Modifies Tax Payment Requirement: Rs. 3 Crores Due in 15 Days to Stay Rs. 41.38 Crore Demand Pending Appeal.

The HC disposed of the writ petition challenging the order under Section 220(6) of the Income Tax Act, 1961, which required the petitioner to pay Rs. 5 crores to stay a demand of Rs. 41.38 crores. The Court directed the petitioner to pay Rs. 3 crores within fifteen days, staying the demand pending appeal resolution. The petition was disposed of without costs, and all pending miscellaneous petitions were closed.

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Issues Involved:
Assaulting the legality and validity of the order passed by respondent u/s 220(6) of the Income Tax Act, 1961.

Summary:
The petitioner, M/s. Zoos and Parks Authority of Telangana, challenged the order dated 24.03.2023 passed by respondent No. 1 u/s 220(6) of the Income Tax Act, directing payment of Rs. 5 crores by 30.03.2023 to stay the demand of Rs. 41,38,07,520.00 raised by the Income Tax Department for assessment years 2016-17 to 2021-22. The petitioner had filed appeals under Section 246(A) of the Act against the assessment orders, with separate applications for stay of demand for 2016-17 and 2021-22 u/s 220(6).

The High Court had previously set aside an order granting stay and remanded the matter for a fresh decision. Subsequently, respondent No. 1 passed the impugned order on 24.03.2023, citing the petitioner's lack of valid registration for exemption claims under Section 12A. Despite the pending appeals on entitlement to exemption u/s 11, the Court directed the petitioner to pay Rs. 3 crores within fifteen days, staying the demand until the appeal disposal.

In conclusion, the writ petition was disposed of with no costs, and any pending miscellaneous petitions were closed.

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