Fiit Jee Limited v. Pr. Commissioner of Income-tax & Anr
[Citation -2017-LL-0428-203]
Citation | 2017-LL-0428-203 |
---|---|
Appellant Name | Fiit Jee Limited |
Respondent Name | Pr. Commissioner of Income-tax & Anr |
Court | HIGH COURT OF DELHI AT NEW DELHI |
Relevant Act | Income-tax |
Date of Order | 28/04/2017 |
Judgment | View Judgment |
Keyword Tags | stay of demand of tax |
Bot Summary: | The short question involved in this petition is whether the Assessing Officer was justified in declining the Petitioner s prayer that the percentage of pre-deposit for stay of the demand created as a result of the assessment order dated 23rd December 2016 should be fixed at less than 15 in light of the Office Memorandum dated 29th February 2016. The case of the Petitioner is that the AO erred in not accepting the Petitioner s adoption of the revenue recognition method for splitting the tuition fees collected by it from the students coming to its coaching institute W.P. No. 3630 of 2017 Page 1 of 3 as 60 in the first year and 40 in the second. It is submitted that although this change occurred from the AY 2012-13, the revenue recognition method was accepted by the Income Tax Appellate Tribunal in the Petitioner s own case for the earlier AYs 2007-08 and 2008-09. Instead of remanding the matter to the AO for the above exercise, the Court is of the view that the interests of justice will be met by requiring the Petitioner to deposit around 10 of the demand of Rs.17,57,53,977 as a lump sum amount. It is accordingly directed subject to the Petitioner depositing with the Income Tax Department a sum of Rs.1.75 crores not later than four weeks from today, the demand of Rs.17,57,53,977 by the assessment order for AY 2014-15 against the Petitioner shall remain stayed during the pendency of the appeal against the said order. It is made clear that if the Petitioner fails to comply with the above condition then this order will no longer continue and in that event the abovementioned two orders of the AO will revive. The petition and application are disposed of in the above terms. |