Revisional power over disputed tax includes instalments and partial stay, but routine suspension of collection is not automatic.
A revision provision that expressly allows the High Court to give such directions regarding tax payment as it thinks fit includes power to order instalments and, in appropriate cases, partial stay of disputed tax pending disposal of the revision. The provision does not create an automatic stay on admission; tax collection is ordinarily to continue unless the court moulds interim relief within the statutory framework. The commentary also distinguishes advisory reference jurisdiction from substantive revisional jurisdiction, treating the latter as broad enough to support interim payment directions.
Issues: Whether the High Court, while entertaining a tax revision under section 22, has power to direct payment of disputed tax in instalments or otherwise stay collection of part of the disputed tax pending disposal of the revision.
Analysis: The scheme of the Act shows that, unlike appeals before the appellate authority or the Tribunal, the revision provision in section 22 contains an express proviso empowering the High Court to permit payment of tax in instalments or to give such other direction in regard to payment of tax as it thinks fit. The language is wide enough to include a direction for payment of a part of the disputed tax and stay of the balance in appropriate cases. The provision does not contemplate an automatic stay on admission of the revision, and the legislative policy is that tax collection should ordinarily continue pending revision. The earlier decisions dealing with advisory jurisdiction under the income-tax reference provisions were distinguished, because a revision under section 22 is a substantive jurisdiction conferred on the High Court and not merely an advisory reference jurisdiction.
Conclusion: The High Court does have the power to direct payment of disputed tax in instalments or to pass such other suitable order regarding payment of tax, including partial stay, pending disposal of the tax revision.
Final Conclusion: The petitions succeeded on the legal question of jurisdiction, and the High Court affirmed its authority to mould interim payment directions in revision proceedings under the Act.
Ratio Decidendi: Where a revision statute expressly empowers the High Court to give such direction in regard to payment of tax as it thinks fit, the power includes ordering instalments or partial stay of disputed tax, subject to the statutory policy against routine suspension of collection.
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