Sirs
Please clarify the following as the matter is urgent ;
The ITO issued orders u/s. 201(1) & 201(1A) for short/non deduction of TDS.
Is it necessary to pay the taxes as demanded u/s. 156 before filing a case before the CIT Appeals?
chandra (audit assistant) (58 Points)
14 March 2013
Sirs
Please clarify the following as the matter is urgent ;
The ITO issued orders u/s. 201(1) & 201(1A) for short/non deduction of TDS.
Is it necessary to pay the taxes as demanded u/s. 156 before filing a case before the CIT Appeals?
Siddarth R Sunder Ram
(Finance Professional)
(230 Points)
Replied 15 March 2013
Ideally, you have to deposit the amount demanded in the demand notice before filing an appeal under Sec 246A with the CIT (Appeals). However, there is a provision in Sec 220(6) - applicable to all income tax demands other than advance tax - which says that the AO may choose not to treat the assessee as a defaulter if he has preferred an appeal and not paid the tax, as long as the appeal remains undisposed. So in this case, if AO allows, you can go on appeal without paying the tax
CAclubindia
