Pre-deposit compliance controls stay hearings when the required tax demand deposit is not made and no extension is sought

Non-compliance with the CBDT circular's pre-deposit condition justified refusal to direct expeditious hearing of the stay application in the pending income-tax appeal. The petitioner had not deposited 20% of the demand and did not seek further time to make the deposit, so the condition for consideration of the stay application on merits was not satisfied. On that basis, the request for early hearing was declined and the petition was dismissed.

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Issues: Whether the petitioner was entitled to expeditious hearing of the stay application in the pending income-tax appeal despite non-deposit of 20% of the demand as required by the CBDT circular.

Analysis: The petitioner sought only a direction for early hearing of the stay application. The record showed that the required 20% of the demand had not been deposited and no request for further time to make the deposit was made. In those circumstances, the condition for hearing the stay application on merits was not satisfied.

Conclusion: The request for expeditious hearing was declined and the petition was dismissed.

Final Conclusion: Relief was refused because the admitted non-compliance with the pre-deposit requirement prevented consideration of the stay application on merits.

Ratio Decidendi: Where a circular-linked pre-deposit condition is admittedly not met and no time extension is sought, a court may decline to direct expeditious hearing of the stay application.

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