AO passed the order making certain disallowances. Pending such appeal, assessee requested to keep tax demand in abeyance. AO rejected the application and directed to deposit 20 per cent of tax demand. On writ the court held that since same disallowances and additions made under similar circumstances in case of other similar trusts were deleted by CIT(A) revenue should not recover the tax in dispute when the appeal is pending before CIT(A). (AY. 2016 – 17)
ARCIL Retail Loan Portfolio001-D-Trust v. PCIT (2019) 263 Taxman 508 (Bom.)(HC)
S. 226 : Collection and recovery-Stay–Pendency of appeal before CIT (A)- Similar addition was decided in favour of other assessee by the CIT(A) -AO cannot direct the Assessee to deposit 20 percent of tax demanded. [S. 246A]