Dismissing the petition the Court held that ;assessee miserably failed to substantiate their contention that they were unable to mobilise funds to comply with direction of Assistant Commissioner to deposit 20 per cent of tax demanded nor they had brought out as to how they had made out a prima facie case for grant of an unconditional stay, mere pendency of an appeal before Commissioner (Appeals) was no ground to state that there should be stay on recovery of tax demanded.( AY.2011-12 to 2016-17)
Vasan Health Care (P.) Ltd. v. ACIT (2018) 406 ITR 462/256 Taxman 4 (Mad)(HC)
S. 226 : Collection and recovery – Stay – Mere pendency of an appeal before Commissioner (Appeals) was no ground to state that there should be stay on recovery of tax demanded. No prima facie case is established for grant of an unconditional stay- Direction of AO to deposit 20 percent of tax demanded was held to be justified [ S.220 ]