Interim stay on tax recovery and administrative transfer order upheld pending disposal of assessment appeals.

Interim protection against recovery from the petitioner's bank accounts was continued pending disposal of the assessment appeals because the petitioner showed a prima facie case, faced irreparable injury if protection was withdrawn, and the balance of convenience favoured maintaining the stay; the Tribunal also noted that tax was already being deducted at source. The Commissioner's transfer order was treated as an administrative exercise of statutory power transferring the case between assessing circles and was not found to prejudice the appeals on the merits, so the request to quash it was rejected. The pending appeals were left to be decided independently on their own merits.

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Issues: (i) Whether the interim stay order restraining recovery from the petitioner's bank accounts should be confirmed pending disposal of the appeals against the assessment orders; (ii) Whether the Commissioner's transfer order was liable to be quashed.

Issue (i): Whether the interim stay order restraining recovery from the petitioner's bank accounts should be confirmed pending disposal of the appeals against the assessment orders.

Analysis: The assessment appeals were already pending before the appellate authority. The Tribunal found it unnecessary to pronounce on the merits of the assessment orders at that stage. On the facts, the petitioner had a prima facie case, it would suffer irreparable injury if the protection was withdrawn, and the balance of convenience supported continuance of the interim arrangement. The Tribunal also noted that tax was already being deducted at source, so the respondents' interests remained protected.

Conclusion: The interim stay order was confirmed and directed to continue until disposal of the appeals.

Issue (ii): Whether the Commissioner's transfer order was liable to be quashed.

Analysis: The Tribunal held that the transfer order did not prejudice the appellate authority on the merits and could be understood only as an administrative order transferring the case from one assessing circle to another under the applicable statutory power.

Conclusion: The request to quash the Commissioner's order was rejected.

Final Conclusion: The application was disposed of by continuing interim protection in favour of the petitioner, while leaving the Commissioner's transfer order undisturbed and allowing the pending appeals to be decided on their own merits.

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