CONSTITUTION OF INDIA, 1950

Article 226

Writ petition - Stay petition - Recovery proceedings - Condition of deposit of 25% within a period of six months

Assessee through the instant writ petition had assailed the order passed by Revenue authority whereby while entertaining the stay application along with the appeal preferred against the assessment order, demand was stayed subject to the condition of deposit of 25% within a period of six months. Assessee submitted that the condition of payment of 25% was not justified in view of the order of this Court in W.A. No.1536/2019 whereby this Court had directed that while entertaining the application for stay, the condition of 20% cannot be imposed. Held: No doubt that in the instant stay application, assessee was directed to pay 25% of the total amount on or before 15-3-2020 and the balance amount has been stayed for a period of six months or till the disposal of the appeal whichever was earlier. The order in writ appeal cannot be said to be in knowledge or notice of CIT(A)/AO while exercising power under section 226(3). But despite that such types of orders are passed imposing a condition of payment of 20% or 25%. Order of stay was set aside and CIT was directed to hear the appeal within a period of six months as prescribed subject to condition that the petitioner would deposit 12.5% within a period of one month.

REFERRED :

FAVOUR : Directions issued

A.Y. : 2012-13

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