In WP (T) No. 81 of 2023- CHHA HC- There is sufficient discretion with authorities while deciding an application seeking waiver of pre-deposit at the time of filing of appeal under Section 220 (6) of Income Tax Act, says Chhattisgarh High Court
JUSTICE P. SAM KOSHY [31-03-2023]

Read Order: Adhiraj Cements v. Union of India and Ors

Chahat Varma

Mumbai, April 17, 2023: The Chhattisgarh High Court has held that the provisions of Section 220(6) of the Income Tax Act, provide sufficient discretion to the authorities on an application seeking waiver of the pre-deposit at the time of filing of the appeal.

While hearing the writ petition, Justice P. Sam Koshy placed reliance on Delhi High Court judgments, Dr. BL Kapur Memorial Hospital Vs. Commissioner of Income Tax (TDS) Delhi-1 and Ors, decided on 25.11.2022 and TATA Teleservices Limited Vs. Commissioner of Income Tax, International Taxation-3& Another decided on 23.03.2022. The Delhi High Court in both these judgments, has relied upon the decision of the Apex Court in case of PCIT Vs. M/s LG Electronics India Pvt. Ltd. wherein it has been held that depending on the facts and circumstances of the case, tax authorities have discretion while considering the grant of stay, exemption or waiver on the deposit of amounts lesser than 20 percent of the disputed amount in demand.

Quashing the impugned order, the Chhattisgarh High Court directed the respondents to reconsider the application of the petitioner seeking waiver of the pre-deposit filed along with the appeal on its own merits in accordance with law keeping in view the provisions under Section 220(6) of the the Income Tax Act.