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of <h1>Court allows installment payment for substantial demand, balancing financial burden & appeal process.</h1> <h3>M/s. Dhanalakshmi Srinivasan Chit Funds Pvt. Ltd. Versus The Principal Commissioner of Income Tax, The Commissioner of Income Tax (Appeals), Chennai -19, The Joint Commissioner of Income Tax, The Assistant Commissioner of Income Tax</h3> The Writ Petition challenged an order mandating immediate payment of 20% of a substantial demand amount. The court modified the order to allow payment in ... Stay of the demand notice on deposit of 20% of the demand amount made - petitioner seeks considerable time for the payment, as even 20% would be more than Ten Crores of rupees - HELD THAT:- Upon instructions, the learned standing counsel appearing for Revenue, stated that the petitioners are permitted to pay 20% of the total demand in five(05) equal monthly installments, first of such installment would commence on or before 30.03.2020. The corresponding installments will have to be paid on 30.04.2020, 30.05.2020, 30.06.2020 and on 30.07.2020. The payment of the balance 80% of the amount is stayed on payment of the above such installments for the 20% of the demand amount. In the meanwhile, the second respondent is directed to hear the appeal in expedition. Issues Involved:1. Quashing of an impugned order directing payment of 20% of total demand immediately.2. Consideration of appeal against the original demand amount.3. Request for time to make the payment of 20% of the demand amount.4. Permission for payment in five equal monthly installments.5. Stay of the balance 80% of the demand amount pending appeal hearing.Analysis:1. The Writ Petition was filed to challenge the impugned order requiring the petitioner to pay 20% of the total demand raised immediately. The demand amount was substantial, totaling &8377; 54,08,05,243 for multiple Assessment Years. The order was modified to allow a stay of the demand notice upon depositing 20% of the demand amount.2. An appeal had already been filed against the original demand made, emphasizing the need for a review of the payment requirement. The petitioner sought relief from the immediate payment condition, citing the ongoing appeal process as a basis for reconsideration.3. The petitioner's counsel requested additional time for payment, highlighting the significant financial burden of even the 20% amount, which exceeded Ten Crores of rupees. This plea for an extended payment timeline was crucial for the petitioner to manage the financial obligation effectively.4. Following discussions, it was decided that the petitioner could pay the 20% of the total demand in five equal monthly installments. The installment schedule was outlined, with the first payment due on or before 30.03.2020, and subsequent payments on 30.04.2020, 30.05.2020, 30.06.2020, and 30.07.2020. The stay of the balance 80% of the amount was contingent upon the timely payment of these installments.5. The judgment concluded by disposing of the writ petition with the provided directions, indicating a resolution to the immediate payment issue through installment arrangements. No costs were imposed, and connected miscellaneous petitions were closed as a result of the decision. The directive aimed to balance the petitioner's financial obligations with the need for a fair appeal process, ensuring a structured approach to addressing the demand amount.
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