CONSTITUTION OF INDIA, 1950

Article 226

Writ - Stay petition - Payment of 20% of the disputed demand -

Petitioner had approached this Court aggrieved by stay order passed by first appellate authority in a stay application filed along with an appeal against the order of assessment. It was specific case of petitioner that while appellate authority was directed to consider the stay application preferred by petitioner on merits, by judgment of this Court, appellate authority while passing stay order relied on certain office memoranda issued by the CBDT to insist on petitioner paying 20% of disputed demand as a condition for grant of stay, pending disposal the appeal. Held: There was some force in the contention of the petitioner that while passing stay order, first appellate authority was virtually acting under dictation, in that the first appellate authority felt compelled by the CBDT instructions relied upon in his order, to insist on a payment of 20% of disputed demand, pending disposal of appeal. When there was a specific direction in judgment of this Court to appellate authority to consider the stay application on merits, appellate authority ought to have considered the stay application as directed by this Court, and without placing any reliance on the instructions issued by the CBDT directing the application to be decided in a particular way. Therefore, first appellate authority was directed to pass fresh orders in matter after hearing petitioner and shall accordingly pass fresh orders, further, recovery steps for recovery of amounts confirmed against the petitioner shall be kept in abeyance.

REFERRED :

FAVOUR : Directions issued

A.Y. :

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