High Court Notice for Hearing on Financial Strain from High Assessment

The High Court issued notice for the matter to be heard on 10th June, 2019, allowing direct service. The petitioner's plea regarding the financial strain caused by the High Pitched Assessment and the demand for payment of 20% of the outstanding amount was acknowledged, setting the stage for a detailed examination of the case during the upcoming hearing.

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Issues:
1. High Pitched Assessment leading to financial burden on the petitioner.

Analysis:
The petitioner, through their learned Advocate, argued that the income assessed by the Income Tax Officer was significantly higher than the returned income, resulting in a "High Pitched Assessment." Reference was made to a judgment by the Hon'ble Apex Court emphasizing that administrative Circulars do not restrict the Commissioner's quasi-judicial authority. The petitioner highlighted the Apex Court's stance on granting deposit orders of amounts lower than 20% in individual cases pending appeal.

The petitioner further contended that despite the Apex Court's observations, the respondent directed them to pay 20% of the demand for Assessment Year 2016-17, amounting to Rs. 34,65,832. Due to financial crises, the petitioner expressed inability to pay this amount in one go, as it constituted 20% of the total outstanding demand of Rs. 1,73,29,162. The petitioner had already deposited the first installment of Rs. 5,00,000 as per the Income Tax Officer's order, with the second installment of the same amount due on 10th June, 2019.

The High Court issued notice for the matter to be heard on 10th June, 2019, allowing direct service. The petitioner's plea regarding the financial strain caused by the High Pitched Assessment and the demand for payment of 20% of the outstanding amount was acknowledged, setting the stage for a detailed examination of the case during the upcoming hearing.

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