INCOME TAX ACT, 1961

Section 220

Recovery - Stay of demand - Stay on recovery of disputed demands on the condition that assessee pays 30% of demand -

By way of this application, assessee sought a stay on recovery of outstanding tax and interest in respect of demand. Assessee also pleaded for an out of turn hearing of the appeal wherein correctness of this demand was challenged. When this stay application came up for hearing, CIT had already granted stay on collection/ recovery of the disputed demands on the condition that assessee pays 30% of demand. It was in this background that it was put to assessee as to why one should not decline to interfere in the matter unless any perversity was shown in stay granted by CIT, or unless it was demonstrated that there are genuine hardships in complying with the conditions attached to the grant of stay. Held: The powers of Tribunal to grant stay on collection/ recovery of demands, during pendency of appeal, could not be exercised in a routine manner simply on the basis of an assessment of prima facie merits in the appeal. No case was made out that by making the partial payment of demands, as directed by CIT, assessee would be subjected to any serious and undue hardship. There was nothing to show that any significant inconvenience will be caused to the assessee in complying with the conditions imposed, while granting the partial stay. In any event, it was open to assessee to point out all related facts to CIT and sought appropriate relaxations as he might be advised. In the result, stay application was dismissed.

REFERRED :

FAVOUR : Against the assessee

A.Y. : 2015-16

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