Judicial exercise of stay power pending tax appeal requires relevant considerations; a bare rejection without reasons is unsustainable.

A statutory power to stay tax recovery pending appeal must be exercised judicially, bona fide and on relevant considerations, including the nature of the dispute, the prospects of the appeal, the amount involved and the hardship from immediate recovery. The appellate authority's failure to show application of mind or to consider those factors made the stay rejection unsustainable. The existence of a separate remedy before the assessing authority under the proviso to section 40 of the Agricultural Income-tax Act did not negate the appellate authority's inherent power to grant stay so that the appeal is not rendered nugatory. The stay rejection was quashed and collection was stayed pending disposal of the appeal.

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Issues: Whether the order rejecting the stay petition was sustainable in law when the appellate authority did not exercise its discretion judicially and failed to consider the relevant factors.

Analysis: The power to stay collection of tax pending appeal is a discretionary statutory power to be exercised judicially, bona fide and on relevant considerations. The authority must apply its mind to the facts and circumstances bearing on the request for stay, including the nature of the dispute, the prospects of the appeal, the amount involved, and the hardship caused by immediate recovery. The existence of a remedy before the assessing authority under the proviso to section 40 of the Agricultural Income-tax Act does not take away the appellate authority's inherent power to grant stay pending disposal of the appeal. An order that gives no indication of such judicial consideration and merely rejects the stay request without showing application of the proper principles is unsustainable.

Conclusion: The stay rejection order was invalid and liable to be quashed. The appellate authority was directed to hear and dispose of the appeal expeditiously, and collection of tax was stayed until disposal of the appeal upon compliance with the condition already imposed by the Court.

Ratio Decidendi: A statutory discretion to stay recovery pending appeal must be exercised judicially on relevant considerations, and an appellate authority with jurisdiction to hear the appeal has inherent power to grant stay so that the appeal is not rendered nugatory.

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