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Cit appeals order to repay

Badaa (employee) (109 Points)

06 February 2018

Hi,

We have got the information that CIT appeal is completed and they have sent the Demand Order 2 months back by post .

But We have Not yet received order by post.

1. What is the next step for recieving the same order

2. Any time limit to pay the Tax demand by Income Tax Department

3. Can i able to pay Total Tax after CIT appeals in installments. ( Assume 12 lakhs is tax with penality and interest ), If installments allowed what is the minumum and maximum installments permitted

please help me in this

Thanks

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10 Replies

Preeti (Team_GSTSoln) (Team GST Experts) (1926 Points)
Replied 06 February 2018

badaa no installment is allowed to pay demand orders.

and u need to contact the dept otherwise ur interest on demand will increase with delay in payment

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Badaa (employee) (109 Points)
Replied 06 February 2018

ohhh. But the Demand is huge 20 lakhs ( with penality and Interest ) and i cant pay immediately.

Please tell me the suggestion

M.Ajay kumar (ca) (99 Points)
Replied 07 February 2018

The original demand notice received by you before appeal was made to CIT(appeals) is valid even since even after appeal there is a demand. but however if there is any increase in demand in the order of CIT(appeals) passes u/s 250, then to such the extent of such excess amount AO has to serve another demand notice otherwise no fresh demand notice required. Generally AO has the discretionary power u/s 220(3) to allow the assessee to pay the demand in installment subject to two conditions 1) an application on this behalf to be made to AO 2) such application shall be made before the expiry of time period specified in notice of demand..since in your case time limit (maximum one month) has already expired AO has no power to allow the demand to be paid in installments..there is no other remedy in law. since your case involves huge demand and you are willing to pay the demand, you can file a writ petition to high court to allow the demand to be paid in installments...

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Badaa (employee) (109 Points)
Replied 07 February 2018

Thanks Mr Ajay for detailed explained. the said Demand order is not yet received in my hand. But i got information that they sent by post 2 months back. how this will be treated date of received or posted the order by income tax officier

M.Ajay kumar (ca) (99 Points)
Replied 07 February 2018

As per section 220(1), assessee has to honour the notice of demand with in 30 days from the date of it's service, since you haven't received it make an application to your AO to send the notice of demand in proper manner...i have a doubt about how CIT(appeals) accepted your appeal application with out the notice of demand because in appeal aoplication i.e form 35, notice of demand shall be attached mandatorily..

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Badaa (employee) (109 Points)
Replied 07 February 2018

Hi Ajay,

CIT ( Appeals ) accepted after demand Order Received from AO as part of sec 142 and sec 143 and Form 35 submitted for appeal.

my last Hearing was going on with Commisioner of IT and completed recently. The final order has been posted 2 month back but i did not receive it.

Now my question is "Which Date of received is considered as on Appeal Order posted or Order is received.

For example appeal Order posted on December 25 2017 and I am goingto receive in person on Feb 15 2018

M.Ajay kumar (ca) (99 Points)
Replied 07 February 2018

the day on which you receive shall only be considered, they might not send you physically but will send you through electronic mode like e mail etc...log into your income tax account-worklist-For your action...then you can get there the notice of demand, check the date mentioned in it and if already time limit of 30 days from then is over , then the only option for us is file a writ petition before high court and i suggest to make an application to AO as per sec 220(3) requesting to allow to pay the demand in installments, legally he may not allow but once try and if he doesn't allow, go for constitutional remedy....

Badaa (employee) (109 Points)
Replied 07 February 2018

Ok Sir. Thanks for your reply.

Sorry for asking basic question.. I am too much depressed

I have verified in WORKLIST. from https://incometaxindiaefiling.gov.in/ -> For you Action

It shows Date on Which Demand is raised 24/02/2014 and issued Notice u/s 245. But i have gone for the CIT Appeal by using this same only.

Where can i see the Final order which is after CIT Appeals ? CIT Appeal is over and that order only not yet received

M.Ajay kumar (ca) (99 Points)
Replied 07 February 2018

sir, you can go income tax office, enquire in CIT(appeals) thapal section,about whether CIT(appeals) order was delivered, based on demand number already raised on you....in respect of demand AO may allow you to pay in installments, if we give indemnity bond for the balance amount after paying atleast 25% of the demand....alternatively you can request AO to a copy of CIT(appeals) order....practically we may not need CIT appeals order for payment of demand..AO will issue notice of demand only in pursuance of order of CIT(appeals)..based on notice of demand which exists in you income tax account proceed to pay, it's the better option because 220(2) interest is getting recurred...

Badaa (employee) (109 Points)
Replied 07 February 2018

Thanks again Ajay. based upon your suggestion, I am planing to visit IT Office Thapal Section about the delivery of my CIT Appeals order or any othre communication