Discretionary stay of tax collection may be refused when required security is not furnished, and the refusal can stand.

Section 39-A(2) vested discretionary power in the appellate, revising or reviewing authority to stay collection of tax pending appeal or revision. A refusal to grant stay may be open to objection if the authority does not disclose the basis for declining to exercise that discretion. On the facts, the assessee was first required to furnish security before stay was considered, but security was not furnished; the authority was therefore entitled to refuse stay. The challenge to the refusal failed and the petitions were dismissed.

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Issues: Whether the appellate authority's refusal to stay collection of further tax under section 39-A(2) of the Act was liable to be quashed.

Analysis: The provision vested discretion in the appellate, revising, or reviewing authority to stay collection of tax pending appeal or revision. A refusal that merely declines to exercise that discretion without indicating the basis may be open to objection. On the facts, however, the authority had required the assessee to furnish security before considering stay, and the security was not furnished. In that situation, the authority was entitled to decline stay.

Conclusion: The challenge to the order refusing stay failed and the petitions were dismissed.

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