Pending assessment appeal and non-speaking stay rejection: High Court allowed fresh stay consideration before the appellate authority.

A pending assessment appeal means the disputed demand has not attained finality, so a stay request should be considered on merits by the appellate authority. A bare, non-speaking rejection of the assessee's stay petition without reasons could not be sustained. The High Court set aside the impugned order, permitted the assessee to move a stay application before the Commissioner of Income Tax (Appeals), and directed that authority to decide it within the stipulated time. Interim protection against coercive recovery was continued until that decision.

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Issues: Whether the rejection of the assessee's stay petition against recovery of disputed tax demand could be sustained when the assessment appeal was pending before the appellate authority, and whether the assessee should be directed to seek stay before that authority.

Analysis: The assessment order had been appealed against and the appeal was admittedly pending, so the demand had not attained finality. In such circumstances, the assessee was entitled to seek stay before the appellate authority and have the request considered on merits. The impugned rejection was a bare one-line order without reasons or findings. Since the appellate authority was the proper forum where the appeal was pending, the matter was not required to be remanded to the Principal Commissioner.

Conclusion: The rejection of the stay petition was unsustainable. The writ petition was allowed, the impugned order was set aside, and the assessee was permitted to move a stay application before the Commissioner of Income Tax (Appeals), who was directed to decide it on merits within the stipulated time. Interim protection against coercive recovery was granted until such decision.

Final Conclusion: The assessee succeeded in challenging the non-speaking rejection of stay and obtained a direction for consideration of stay by the appellate authority, with protection against recovery meanwhile.

Ratio Decidendi: Where an assessment appeal is pending, a non-speaking rejection of a stay application without reasons cannot be sustained, and the assessee may be directed to seek stay before the appellate authority for decision on merits.

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