Stay condition requiring 20% deposit upheld where concessional tax claim lacked supporting documents.

A stay condition requiring deposit of 20% of the assessed tax demand was upheld as lawful where the appellate authority found, on a prima facie basis, that the assessee had not produced documents to justify concessional tax treatment. The challenge failed because the partial deposit requirement was imposed in light of the substantial tax liability and the absence of substantiating material for the claimed concessional rate.

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Issues: Whether the condition requiring deposit of 20% of the tax demand, imposed while granting stay of recovery pending appeal, was illegal.

Analysis: The appellant challenged the stay condition on the ground that the assessment had been completed without sufficient time to produce the balance 'C' Forms and to claim concessional tax treatment. The Authority, while considering the stay application, recorded a prima facie finding that the appellant had not produced documents to substantiate entitlement to the concessional rate of tax. In that background, the condition requiring partial deposit before grant of stay was imposed in view of the substantial tax liability.

Conclusion: The condition attaching deposit of 20% of the existing tax demand was held to be lawful and the challenge to it failed.

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