Court orders Income Tax Dept. to halt recovery actions pending stay application decision. Upholds due process.

The Court granted the writ petition, directing the Income Tax Department's lower Assessing Authorities to refrain from coercive measures for recovery until the pending stay applications are decided by higher Authorities. The Court emphasized the importance of due process and fair opportunity for the petitioner, highlighting the need for the Department to await the outcome of the stay applications before taking any enforcement actions.

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Issues:
1. Prayer for writ of mandamus to stop enforcement of dues confirmed by order
2. Prayer for writ of mandamus to expedite appeal disposal
3. Request for interim relief to prevent coercive action for recovery
4. Stay application pending before First Appellate Authority and Principal Commissioner
5. Granting of interim stay by Joint Commissioner
6. Non-payment of 15% of disputed demand by assessee
7. Court's satisfaction with the need to await disposal of stay applications
8. Direction to lower Assessing Authority to refrain from coercive measures

Analysis:
The petitioner, an assessee, sought a writ to prevent the Income Tax Department from enforcing dues confirmed by an order until the appeal (ITA 146) is disposed of. The counsel emphasized the need for the Respondents not to take coercive action for recovery of disputed demands, particularly until the stay application is heard by the First Appellate Authority and Principal Commissioner. The stay application before the Commissioner of Income Tax (Appeals) was scheduled for a hearing, while the one before the Principal Commissioner was pending. The Respondent-Department was directed to accept notice, and it was revealed that an interim stay had been granted by the Joint Commissioner, requiring payment of 15% of the demand by a specified date.

The petitioner had not paid the 15% of the disputed demand and approached the Court through a writ petition. The Court acknowledged that the Respondent-Department's lower Assessing Authorities should wait for the disposal of relevant stay applications filed by the petitioner before higher Authorities. Coercive recovery measures before the resolution of such stay applications led the assessee to seek interim relief from the Court, which ideally should have been considered by the higher Departmental Authorities promptly and with a reasoned order. The Court directed that no coercive measures for recovery should be taken by the lower Assessing Authority until the relevant stay applications are decided by the concerned Authorities, emphasizing the importance of due process and fair opportunity for the petitioner.

In conclusion, the Court disposed of the petition with no costs, highlighting the necessity for the Respondent-Department to await the outcome of the pending stay applications before taking any coercive actions for recovery against the petitioner. The judgment underscored the significance of following proper procedures and providing a fair hearing to the assessee before resorting to enforcement measures.

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