Court upholds denial of stay applications under Section 220(6) of Income Tax Act. Review applications to be filed promptly.

The court upheld the orders rejecting stay applications for Assessment Years 2012-13 and 2013-14 under Section 220(6) of the Income Tax Act, 1961, due to the petitioners' failure to seek a review. The court directed the petitioners to file review applications within a week, restraining the Revenue from further bank account actions until the Commissioner of Income Tax's decision and for an additional two weeks thereafter. The court emphasized the need for independent consideration of stay applications and adherence to established parameters. No costs were awarded in this matter.

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Issues:
Challenge to orders rejecting application for stay in respect of Assessment Years 2012-13 and 2013-14 under Section 220(6) of the Income Tax Act, 1961.

Analysis:
The judgment deals with two petitions challenging orders rejecting stay applications for Assessment Years 2012-13 and 2013-14 under Section 220(6) of the Income Tax Act, 1961. The petitioners had filed appeals before the Commissioner of Income Tax (Appeal) [CIT(A)], which were pending disposal, and sought to stay the demand until the appeal's resolution. The impugned orders directed the petitioners to pay 15% of the demands raised for each year as a condition for stay until the CIT(A) disposes of the appeals. The petitioners did not seek a review of the orders, leading to the attachment of their bank account. The court noted that the orders did not follow the parameters set in previous judgments and emphasized the Revenue's obligation to consider stay applications independently. Despite this, the court did not disturb the orders or the attachment notices due to the petitioners' inaction.

The judgment highlighted that the CBDT's instructions allowed aggrieved parties to seek a review of the Assessing Officer's decision by approaching the Principal Commissioner of Income Tax / Commissioner of Tax. To address the situation, the court instructed the petitioners to file an application for review within a week, emphasizing that the Principal Commissioner of Income Tax / Commissioner of Income Tax should consider and dispose of it according to established parameters. If the petitioners file review applications within the stipulated time frame, the Revenue was restrained from further action on the bank account attachments until the Commissioner of Income Tax resolves the matter and for an additional two weeks thereafter. However, it was clarified that the attachment of the bank accounts would continue, but the Revenue was prohibited from taking any further action post-attachment.

In conclusion, the court disposed of both writ petitions with the directive for the petitioners to file review applications within a week, ensuring the Revenue refrains from further bank account actions pending the Commissioner of Income Tax's decision and for an additional two weeks thereafter. No costs were awarded in this matter.

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