The Bombay High Court has held that the assessees’ contention that he received no consideration and no tax could have been demanded from him is a subject matter of the Appeal proceedings and cannot be a ground for lifting the rigour of the requirement of deposit of 20% of the disputed tax pending appeal.
Re-assessment proceedings were initiated against the assessee. Since there was no response to the re-assessment notice issued to the Petitioner and non-production of the documents during pendency of such proceedings, the Assessing Officer passed an ex-parte order where he has imposed the tax of Rs.42 Lacs (round off ), 20% of which, would come to close to Rs.8 Lacs.
The bench comprising Justice Akil Kureshi and Justice S.J Kathawalla held that the decision of the authorities to demand payment of 20% of the disputed demand is in consonance with the department’s circulars. There are no extraordinary reasons for imposing condition lighter than one imposed by the authorities, the bench said.
“The decision of the authorities is in consonance with the department’s circulars. We do not find any extraordinary reasons for imposing condition lighter than one which has been imposed by the said authorities. The contention of the Petitioner that he had received no consideration at the time of transfer of the tenancy of immovable commercial property of which he is the owner and that therefore no tax could have been demanded from him, would be the subject matter of the appeal proceedings. This is not a ground for lifting the rigour of the requirement of deposit of 20% of the disputed tax pending appeal,” the bench said.
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