Allowing the petition the Court held that; when the Commissioner (Appeals) granted stay by depositing 20 per cent of demand by installments the firm is complying the directions . Action of the AO invoking S. 188A and issuing the notice to partner to deposit tax is held to be not valid. Proceedings against partner was stayed, matter remanded. (AY. 2015-16)
Mukesh Kumar Prabhatbhai Desai v. ITO (2019) 260 Taxman 343 (Guj.)(HC)
S. 188A : Firm – Joint and several liability of partners – Stay- Commissioner (Appeals) granted stay by depositing 20 per cent of demand by installments- AO invoked S.188A and issued notice to him to deposit tax – Proceedings against partner was stayed. [S. 226]