USHA MURUGAN Vs. DEPUTY COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS Writ Appeal is filed against the order of the learned Single Judge in R.P.No.177/2012 in WP(C) No.3724/2012 directing payment of 50% of the demand as condition for stay against recovery of tax for the assessment year 2008-09. The demand is around Rs.4 crores and the appeal filed against the same is pending before the first appellate authority. Learned Senior counsel appearing for the appellant submitted that the demand is attributable to disallowance of expenditure under Section 40A(ia) of the Income Tax Act on account of assessee's failure to deduct tax at source on commission payments in lottery business. Learned counsel submitted that appeal filed for the preceding year on the same issue also is pending and stay has been granted by the Assessing Officer on payment of Rs.20 lakhs.

(2.) HAVING regard to the contentions raised, we feel conditional stay order can be modified by directing payment of Rs.50 lakhs instead of 50% ordered by the learned Single Judge on condition that the payment will be made on or before 30/03/2012. However, since the learned Standing Counsel submitted that demand for several other years and in respect of connected firms are pending against the appellant, which are not subject matter of this Writ Appeal, we leave it open to the Department to proceed for recovery in other cases limiting the stay granted by us under this judgment only for the demand of Rs.3,96,11,900/- for the year 2008-09 that too on condition of payment of Rs.50 lakhs. Recovery of demand for the year will remain stayed till 30/03/2012 and if Rs.50 lakhs is paid, recovery will remain stayed till disposal of the appeal by the CIT (Appeals). The CIT (Appeals) is directed to dispose of all pending appeals of the deceased assessee within a period of two months from the date of receipt of a copy of this judgment. This Writ Appeal is disposed of as above.