Stay rejection without considering high-pitched assessment and genuine hardship was quashed and remanded for fresh decision.

A stay application must be decided by considering whether the assessment is unreasonably high-pitched and whether insistence on pre-deposit would cause genuine hardship, in line with Instruction No. 1914 and the Office Memorandum/Circular dated 29.02.2016. The Karnataka HC found that the rejection order gave no reasons on either aspect and was therefore non-speaking, showing no proper application of mind. The order was unsustainable and was quashed. The stay application was restored and remanded for fresh consideration under the governing instruction and circular.

---

---

Issues: Whether the order rejecting stay without examining whether the assessment was unreasonably high-pitched and whether insistence on deposit caused genuine hardship was sustainable.

Analysis: The stay application had to be examined in the light of Instruction No. 1914 and the Office Memorandum/Circular dated 29.02.2016. The deciding authority was required to consider whether the assessment was unreasonably high-pitched and whether the demand for pre-deposit would cause genuine hardship. As the impugned order gave no reasons on either aspect and was therefore non-speaking, it did not reflect the mandated application of mind.

Conclusion: The rejection order was unsustainable and was quashed. The stay application was restored and remanded for fresh consideration in accordance with the governing instruction and circular.

---