Single stay application maintainable for connected appeals; demand stayed where assessed income materially exceeded returned income.

A single stay application was held maintainable for multiple connected appeals and assessment years arising under the same enactment, so the objection to one consolidated application was rejected. The Tribunal then stayed the outstanding demand because a substantial portion had already been paid, the balance had been reduced on rectification, and the assessed income for the relevant years was materially higher than the returned income. Interim relief was granted for six months or until disposal of the connected appeals, whichever was earlier, with priority hearing directed.

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Issues: (i) Whether one stay application was maintainable in respect of several appeals and assessment years under the same enactment; (ii) whether the demand outstanding against the assessee deserved to be stayed.

Issue (i): Whether one stay application was maintainable in respect of several appeals and assessment years under the same enactment.

Analysis: The Tribunal followed its earlier view that where the matters arise under one enactment, a single stay application can cover multiple appeals and assessment years. The objection raised against the filing of one application for the connected appeals was therefore not accepted.

Conclusion: The issue was decided in favour of the assessee.

Issue (ii): Whether the demand outstanding against the assessee deserved to be stayed.

Analysis: The Tribunal noted that a substantial part of the demand had already been paid, the balance demand had been reduced after rectification, and the assessed income in the relevant years was much higher than the returned income. Applying the settled principle relied upon from the High Court decision, the Tribunal found that stay of demand was justified.

Conclusion: The demand was stayed for six months or until disposal of the connected appeals, whichever was earlier.

Final Conclusion: The stay application succeeded and interim protection was granted to the assessee, with the connected appeals directed for priority hearing.

Ratio Decidendi: A single stay application is maintainable for multiple connected appeals under one enactment, and outstanding demand may be stayed where the assessed income is substantially higher than the returned income and the circumstances justify interim relief.

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