Court grants interim stay of demand in writ petition under Income Tax Act, 1961

The court granted interim stay of demand in a writ petition involving an individual assessee assessed under the Income Tax Act, 1961. The petitioner's compliance with payment conditions led to the stay. The court directed expedited disposal of the appeal within three months, ensuring the petitioner's right to a personal hearing. The interim stay remained until final appeal disposal, with no cost orders issued.

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Issues:
Assessment under Income Tax Act, 1961 - Appeal for interim stay of demand - Compliance with conditions for stay - Direction for expeditious disposal of appeal.

Analysis:
The judgment pertains to a writ petition where the petitioner, an individual assessee, was assessed under Section 143(3) read with Section 153B(1)(b) of the Income Tax Act, 1961. The petitioner had appealed against the assessment order to the Commissioner Income Tax (Appeals) -18, Chennai. Subsequently, the petitioner sought interim stay of demand pending appeal, which was not initially granted, leading to the filing of the instant writ petition challenging the refusal of interim stay. The court noted that a partial payment had been made by the petitioner as per an earlier order, and the remaining amount was to be paid by specific dates. The compliance with the payment conditions led to the interim stay being granted.

The court acknowledged the compliance by the petitioner with the payment conditions, resulting in the interim stay being in effect. The revenue's counsel requested an expeditious disposal of the pending appeal, which the petitioner's counsel agreed to cooperate with. Consequently, the court set aside the earlier order refusing interim stay and directed the second respondent to expedite the disposal of the main appeal within three months from the date of the current order, ensuring the petitioner's opportunity for a personal hearing.

The judgment emphasized that the interim stay on the original demand, which was granted due to compliance with payment conditions, would remain in force until the final disposal of the appeal by the second respondent. The court concluded the writ petition with the specified orders and observations, highlighting the closure of connected miscellaneous petitions and the absence of any cost orders.

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