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MANINDRA MOHAN SHRIVASTAVA, MUNNURI LAXMAN
Kunj Bihari Lal Agarwal – Appellant
Versus
Principal Commissioner of Income Tax (Central) – Respondent
ORDER :
Heard.
2. This second round of petition, at the instance of assessee, is in the matter of prayer for stay against demand.
3. The petitioner carries on the business of Handicraft. The facts which are borne out from the record of the case are that assessment for the years 2014-15 and 2016-17 were re-opened on the basis of a survey report, which eventually led to an order dated 07.03.2022 for the years 2014-15 and 2016-17. Another order was passed on 21.11.2022 in respect of the assessment year 2020-21.
4. Aggrieved by the aforesaid orders, the petitioner invoked statutory remedy of appeal before the appellate authority which is pending consideration.
5. On petitioner's prayer for stay of demand pending consideration of the appeal, the authority proceeded to pass an order directing the petitioner to deposit 20% of the demand. The petitioner approached this Court by filing a writ petition being D.B. Civil Writ Petition No. 3776/2023, mainly on the ground that the order disposing off the prayer for stay was more-or-less mechanical, without application of judicial mind and abdicating judicial functions by mechanically following the administrative instructions. The plea of the peti
The court upheld the authority's decision to grant a stay subject to a 10% deposit, emphasizing the need for procedural propriety in stay applications.
Assessments deemed excessively high must consider genuine hardship, allowing stays without mandatory pre-payment when necessary to protect taxpayer interests.
Power to consider prayer for stay is incidental and ancillary to the power to hear appeals.
The court upheld the principle of consistency by maintaining existing stay orders against final assessments pending a writ petition, emphasizing compliance in tax deposits.
Authorities must ensure decisions on stay petitions are reasoned to validate the exercise of discretion.
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