Interim stay on recovery refused where assessment was supported by search material and high-pitched demand was not established

Interim stay against recovery pursuant to an assessment order was declined where the Court found the assessment to be supported by detailed examination of search and seizure material and therefore justified on the revenue's showing. The assessee's reliance on CBDT instructions governing recovery of disputed demand and the claim that the demand was excessively high-pitched did not establish sufficient grounds for interim relief on the facts presented. The Court rejected the stay-related request, while leaving the assessee free to seek relaxation before the Assessment Officer.

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Issues: Whether interim relief/stay should be granted against recovery pursuant to the assessment order on the ground that the assessment was stated to be excessively high-pitched.

Analysis: The assessment order recorded detailed examination based on search and seizure material, and the assessment was justified by the revenue authorities. The assessee relied on the CBDT instructions concerning recovery of disputed demand and contended that the demand was disproportionately high. The Court found no sufficient ground to grant interim relief in the facts of the case, while leaving liberty to the assessee to seek relaxation before the Assessment Officer.

Conclusion: Interim relief was declined and the request for stay-related relief was rejected.

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