1 wp-2080 PGK IN THE HIGH COURT OF JUDICATURE AT BOMBAY CIVIL APPELLATE JURISDICTION Writ Petition No.2080 of 2011 D.P. World Private Limited .. .. Petitioner v/s. The Union of India & ors. .. .. Respondents Mr.Prakash Shah i/by PDS Legal for Petitioner. Mr.Vimal Gupta for Respondents. ---- CORAM : J.P. DEVADHAR & SMT.ROSHAN DALVI, JJ. DATED : 15th March 2011 P.C. : 1.The Petitioner is aggrieved by the order dated 8th March 2011 passed by the Commissioner of Income Tax, directing the Petitioner to deposit an amount of Rs.6 Crores being approximately 50% of the net demand of Rs. 12.56 Crores raised pursuant to the assessment order dated 24th December 2010 relating to the Assessment Year 2008-09. 2.Against the demand raised for the Assessment Year 2008-09, the Petitioner has filed an Appeal and the 2 wp-2080 same is pending before the CIT(A). In the meantime, the Petitioner had filed an application before the Assessing Officer seeking stay of the demand raised pursuant to the assessment order dated 24th December 2010. The Assessing Officer, by his order dated 18th February 2011, rejected the application for stay, without assigning any reasons and directed the Petitioner to deposit the entire duty demand. Challenging the said order, the Petitioner filed a Writ Petition bearing No.1574 of 2011. The said Writ Petition was disposed of on 7th of March 2011 by directing the Petitioner to file a stay application before the CIT and the same was directed to be disposed of by the CIT in accordance with law. 3.By the impugned order dated 8th March 2011, the CIT has directed the Petitioner to pay the amount of Rs.6 Crores without assigning any reasons. In these circumstances, the present Petition is filed to challenge the order of the CIT dated 8th March 2011. 4.In the present case, addition of Rs.28.11 Crores has been made in the assessment year in question mainly, by including the value of three flats received by the assessee as and by way of a gift. The contention of the Petitioner was that the value of the property received as a gift cannot be brought to tax under the head 3 wp-2080 income from other sources as it is a capital receipt and the capital gains arising thereunder alone could be taxed. Prima facie there is merit in this contention. Hence, leaving aside the liability arising from the above addition, we deem it proper to grant stay of demand subject to payment of Rs.1.5 Crores as follows:- (i) Rs.75 Lakhs shall be paid on or before 21st of March 2011. (ii) Rs.75 Lakhs shall be paid on or before 28th of March 2011. 5.Mr.Devang Mankodi, Director of the Petitioner, who is present in Court, gives an undertaking to the Court that the amounts set out hereinabove would be paid on or before the dates mentioned hereinabove. The undertaking of Mr.Devang Mankodi is accepted. 6.In view of the undertaking given by the Director of the Petitioner-Company, the attachment of bank accounts levied by the Assessing Officer is hereby lifted. 7.Subject to the payment of Rs.1.5 Crores as stated hereinabove, there shall be a stay on the recovery of the balance amount till the disposal of the Appeal pending before the CIT(A) and four weeks thereafter. 4 wp-2080 8.It is made clear that if the amounts are not paid on the dates set out hereinabove, the stay shall stand vacated. 9.The Petition is disposed of accordingly. (SMT.ROSHAN DALVI, J.) (J.P. DEVADHAR, J.)