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Non Payment of 20% demand against appeal

Tejas shah (Sweeper) (163 Points)

25 September 2018

Can appeal be filed without payment of 20% of demand???

The demand raised is of Rs. 2L approx...

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5 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (180927 Points)
Replied 25 September 2018

Not possible.....

But request for lesser amount can be applied.

https://www.moneylife.in/article/sc-allows-less-than-20-percentage-deposit-of-disputed-amount-in-tax-demand-cases/54895.htm l

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (180927 Points)
Replied 25 September 2018

The Supreme Court. In its judgement, the apex court (CIVIL APPEAL NO. 6850 OF 2018) clarified that irrespective of the OMs from CBDT, the tax authorities, depending on facts of individual cases, can grant deposit orders for an amount less than 20% of the tax demand.

Tejas shah (Sweeper) (163 Points)
Replied 25 September 2018

but sir my consultant has filed an appeal...and submitted form 35 and no amount was asked to be deposited by him... and in my income tax tab i can see appeal filed

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (180927 Points)
Replied 25 September 2018

Pre-deposit of tax

Before filing the appeal, the taxpayer should pay the tax determined as per the return of income filed by him.If no return of income is filed, the taxpayer should pay tax equal to the amount of advance tax payable by him. However, on application made by the taxpayer, the Commissioner of Income-tax (Appeal) may exempt the taxpayer from payment of tax before filing the appeal. Such benefit is granted if good and sufficient reason is proved by the taxpayer for non-payment of tax before filing the appeal.

Documents to be submitted for appeal

1.·Form No. 35 (including statement of facts and grounds of Appeal) –in duplicate. However, e-filing has been made mandatory for persons for whom e-filing of return of income is mandatory w.e.f 1/3/2016.

2.·One certified copy of order, appealed against.

·Notice of demand in original.

3.·Copy of challans of fees the details of the challan (i.e., BSR code, date of payment of fee, serial number and amount of fee) are required to be furnished in case of e-filing of form of appeal.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (180927 Points)
Replied 09 December 2024

Vide O.M. N0.404/72/93-ITCC dated 29.2.2016 revised guidelines were issued in partial modification of instruction No 1914, wherein. inter alia, vide para 4(A) it had been laid down that in a case where the outstanding demand is disputed before CIT(A), the Assessing Officer shall grant stay of demand till disposal of first appeal on payment of 15% of the disputed demand unless the case falls in the category discussed in para (B) there under. Similar references to the standard rate of 15% have also been made in succeeding paragraphs therein. 2. The matter has been reviewed by the Board in the light of feedback received from field authorities. In view of the Board’s efforts to contain over pitched assessments through several measures resulting in fairer and more reasonable assessment orders, the standard rate of 15% of the disputed demand is found to be on the lower side. Accordingly. it has been decided that the standard rate prescribed in O.M. dated 29.2.2016 be revised to 20% of the disputed demand, where the demand is contested before CIT(A). Thus all references to 15% of the disputed demand in the aforesaid O.M dated 29.2.2016 hereby stand modified to 20% of the disputed demand. Other guidelines contained in the O.M. dated 29.2.2016 shall remain unchanged

Refer:: https://www.caclubindia.com/experts/circular-numbre-for-payment-of-20-demand-tax-for-filing-appeal-2853564.asp