The Supreme Court quashed deposit of additional amount as condition precedent for continuation of stay as there was deposit of 15% of the outstanding dues.
From a perusal of the order of the High Court, it is clear that out of the total dues of Rs.3,47,00,000/-( Three Crore Forty Seven Lakhs Only ), an amount of Rs.2,00,00,000/- ( Rupees Two Crore Only ) and an addition sum of 15 per cent of the outstanding dues had already been deposited at the time of filing of the appeal against the order of the Assessing Officer.
The criminal proceedings of which the quashing of the order is sought are on the ground of evasion of taxes.
A Two-Judge Bench of Justice BR Gavai and Justice Sandeep Mehta observed that “In that view of the matter, we find that it was not necessary for the High Court to have directed the appellant to deposit an additional amount of Rs.1,00,00,000/-( Rupees One Crore Only ) for continuing the stay.”
“In view of the above, the stay part of the impugned order which directs an amount of Rs.1,00,00,000/-( Rupees One Crore Only ) to be deposited as condition precedent for continuation of stay is quashed and set aside. 5. The High Court is requested to decide the petition on its own merits without insisting on the said condition(s)” the Court concluded.
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