INCOME TAX ACT, 1961

Section 220 Article 226

Writ - Recovery - Stay of demand - No perversity in order of Tribunal rejecting stay petition filed by assessee

Assessee-limited company, filed writ petition, challenging order passed by Tribunal, wherein stay petition filed by assessee, praying for stay of demand and not to initiate any coercive steps pursuant to assessment order was rejected. Held: There was no perversity or erroneous approach on part of Tribunal in not granting an interim order sought for by assessee. When Tribunal failed to exercise its discretion in granting an interim order, High Court while testing the correctness of the said order, would consider as to whether there was any perversity in the approach of the Tribunal for the High Court to interfere by substituting its opinion. Instant proceedings were not appellate proceedings over and above the order passed by the Tribunal. In fact, the assessee chose to invoke extraordinary jurisdiction of this Court under Article 226 of the Constitution of India. The limits to which this jurisdiction can be extended, especially in taxation matters, are well defined. Thus, in the absence of any perversity in order, Court declined to interfere with order.

REFERRED :

FAVOUR : Against the assessee.

A.Y. :

INCOME TAX ACT, 1961

Section 220 Article 226

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