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21. Cadence Design Systems India Pvt. Ltd. v. PCIT:
TS – 652 – HC – 2026 (Del.):
A. Ys. 2020-21 & 2021-22: Date of order 04/05/2026:
S. 220(6) of ITA 1961
Stay of demand — S. 220(6) — Pre-deposit of 20% of the disputed demand — Not a mandatory condition — Issue is decided by the Jurisdictional High Court — Assessee eligible for grant of complete stay of demand.
In the scrutiny assessments for A. Y. 2020-21 and A. Y. 2021-22, additions were made by disallowance in relation to the expenditure incurred in respect of the employee stock option plan. The assessment were completed and demands were raised for both the years. The assessee filed appeals and filed applications for stay of demand u/s. 220(6) of the Income-tax Act, 1961. The assessee’s application for stay of demand was rejected, and the assessee was required to deposit 20% of the demand.
The assessee filed a writ petition before the High Court challenging the rejection of stay of demand, primarily on the ground that when the issue is decided in favour of the assessee by the jurisdictional High Court, the requirement of deposit of 20% of the demand would not be applic
