Bank guarantee for stay pending appeal must be received and acknowledged; bank account attachment does not justify refusal.

The assessing authority was bound to receive and acknowledge a bank guarantee furnished with the security bond for stay pending appeal. The attachment of the assessee's bank account did not affect that ministerial duty, because the question of whether the bank account should operate was to be governed by any interim order passed by the appellate authority. Refusing to accept the guarantee on the ground of prior attachment was unjustified. The authority was therefore required to receive the bank guarantee and acknowledge it so the assessee could approach the appellate authority for stay.

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Issues: Whether the assessing authority was bound to receive the bank guarantee furnished by the assessee and acknowledge receipt of it to enable the assessee to seek stay before the appellate authority.

Analysis: The assessee furnished a bank guarantee together with the security bond in the course prescribed for obtaining stay pending appeal. The authority declined to receive it on the ground that the assessee's bank account had already been attached. The attachment of the bank account had no bearing on the ministerial act of receiving and acknowledging the bank guarantee for transmission to the appellate authority. The refusal to accept the guarantee was unjustified, as the question of the operation of the bank account was to be governed by any interim order passed by the appellate authority.

Conclusion: The respondent was required to receive the bank guarantee and acknowledge its receipt so that the assessee could move the appellate authority for stay.

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