TaxTMI 
TaxTMI 
2023 (7) TMI 1458
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....2,967/-. 2. The applicant assessee had filed application for stay of demand before the ld. AO on 24/08/2022 and then on 05/09/2022, wherein the ld. AO passed an order dated 21/09/2022 requiring the assessee to pay 20% of the outstanding demand on 22/09/2022. The case of the assessee was that assessee has already paid Rs. 261.27 Crores by way of TDS which was more than 20% of the disputed tax liability. However, the ld. AO directed the assessee to pay 20% of the net demand. Aggrieved by the said order, assessee filed stay application before this Tribunal on 27/09/2022 in SA No.122/Mum/2022. Before the Tribunal it was pleaded that, assessee has already paid more than 20% of the disputed tax liability by way of TDS and AO ought to have stayed....
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.... 3. Thus, the Tribunal has categorically directed the AO that such a computation of 20% has to be with respect to total disputed demand, and not with respect to the outstanding demand specified under section 156 and remitted the matter to the AO for verification, whether 20% of the disputed demand has been paid and if so pass an appropriate order granting stay to the assessee. 4. The ld. AO in his order giving effect in clear violation of the direction of the Tribunal stay order directed the assessee to pay the entire outstanding demand of Rs. 1031,46,82,967/-. Thus, AO exceeded his jurisdiction and in his order dated 13/10/2022, he stated that the disputed demand which is Rs. 1031.47 Crores is the net payable demand after allowing credi....
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....e to the department. However, it would be relevant to note the following observations of the Hon'ble High Court. "The order of assessment dated 25th July, 2022 was passed against the Petitioner based upon which the Assessing Officer (A.0.) calculated the aggregate income tax liability of the Petitioner at Rs. 12,84,27,68,322/- including interest. However, after considering the prepaid taxes including the TDS, self assessment tax, advance tax etc., the outstanding demand payable was calculated at Rs. 10,31,46,82,946/-. An appeal came to be preferred by the Petitioner against the order of assessment which was filed before the Income Tax Appellate Tribunal ("TTAT") on 19 September, 2022. 2. It is stated that as per Instruction No 1914 dat....
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....rsuant to the orders of the Tribunal, the A.O. yet again has passed an order dated 28th February, 2023, wherein it quantified the outstanding demand at Rs. 10,31,46,82,946/- and calculated Rs. 206,29,36,589/- as the amount payable reflecting 20% of the said amount 4. Mr. Kaka, learned Counsel for the Petitioner states that the A.O. has yet again committed an error in determining the amount reflecting 20% of the disputed tax amount on the ground that the calculation was based upon a figure which is in fact the outstanding tax demand, whereas it ought to have been on the basis of the total tax demand. By resorting to a method of calculation as per the order of the Tribunal, the amount of tax deducted at source would be more than the 20% of....
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....t from the A.O. has sought for and matter was fixed for today. A letter from office of CIT Judicial/Division has been filed wherein department has requested for a short adjournment for 15 days. Since, it is stay Granted matter several adjournments has been sought by the department on the same grounds, therefore as a last opportunity, hearing is adjourned to 16.08.2023 on the consent of both the parties." 8. The entire controversy revolves in the present case, whether 20% of the demand for the purpose of staying the balance demand should be calculated with regard to total disputed demand or in respect to outstanding demand specified u/s.156 of the Act. What is contemplated in Section 156 is the working of the demand in accordance with the ....
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...., etc. The 'outstanding demand' may comprise of various components which assessee may not have even challenged or would be a result of various adjustments. Whereas, the disputed demand has to be seen qua the addition which has been disputed before this Tribunal on which the appeal has been filed u/s. 253(1). Here in this case, the assessee has deposited TDS on such capital gain but the entire addition was challenged before the ld. AO as well as before this Tribunal. Such TDS amount undisputedly is more than 20% of the demand as worked out by the ld. AO in his computation of demand relating to this addition. Accordingly, there cannot be any doubt of misinterpretation that 20% has to be reckoned with the disputed demand and precisely for this....