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Vide [2021] 17 ITR-OL 66 (Kar) it is incumbent on the Principal Commissioner of Income-tax to decide on the application for stay considering two questions:-

  1. whether the assessment is unreasonably high-pitched; &


  1. whether the petitioner would be put to genuine hardship because of such assessment.

In this case the assessee suffered rejection of claim of deduction under section 80P as well suffered addition u/s 68/115BBE in the case involving demonetization period. In the absence of payment of 20 per cent. of the disputed demand the application for stay got rejected by the Principal CIT without examining whether the assessment was unreasonably high-pitched and whether the assessment order had caused genuine hardship.

The High Court therefore marked it as a case of gross violation of the principles of natural justice.

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