2001 (2) TMI 864

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....aswar, JM. - In the order dated 27-11-2000 granting stay, the assessee was directed to furnish security to the satisfaction of the AO. Accordingly, the assessee had offered the flat which is stated to be worth Rs. 30 lakhs as security. The outstanding demand is Rs. 15,86,865. However, the AO by letter dated 11-12-2000 rejected the assessee's proposal as not acceptable and directed him to furnish....

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.... in the shape of a flat which is worth around Rs. 30 lakhs. Our directions are sought in this regard. 3. On a careful consideration of the matter and after hearing the rival contentions, we are of the view that the AO was not justified in insisting on a security in the form of a bank guarantee. When we directed that the assessee shall offer security to the satisfaction of the AO, what was meant w....

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.... "On consideration of the facts and circumstances of this case, we are of the view that the action of the Assessing Officer in demanding bank guarantee is unwarranted. As per the order of the Tribunal, the assessee is required to furnish security for the disputed demand to the satisfaction of the Assessing Officer. On the facts and in the circumstances of this case, we feel it necessary to clarif....

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....bitrarily which a judicial or quasi judicial authority is not supposed to do. Even in the case of a discretion, it is well established that the same is to be exercised judiciously. In this case, the Tribunal has directed the assessee to furnish security to the satisfaction of the Assessing Officer and the function of the Assessing Officer is only to verify that the security offered is one which is....