Court grants appellant review opportunity without costs, instructs reassessment of financial hardship claim.

The High Court allowed the appeal, overturned the Tribunal's order, and remanded the case for a fresh review without imposing costs. The appellant was granted another opportunity to submit all relevant financial records before the Tribunal to assess the necessity of the pre-deposit requirement, considering the appellant's financial hardship claim and property attachment under the Prevention of Money Laundering Act. The Tribunal is instructed to evaluate if the appellant's circumstances justify a waiver of the deposit requirement under the Foreign Exchange Management Act.

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Issues involved: Challenge to interim order for deposit, consideration of income tax returns, financial hardship claim, remand for fresh consideration.

Analysis:
The appeal challenges an interim order by the Appellate Tribunal directing the appellant to deposit Rs. 39 lakhs for a stay. The appellant contends that the Tribunal overlooked the income tax returns for 2018-19, focusing only on returns from 1999-2000 to 2002-2003. The appellant's counsel argues the appellant's financial position is precarious, citing attachment of properties worth Rs. 3 crores by Customs and Enforcement authorities under the Prevention of Money Laundering Act, 2002. The appellant asserts that had the Tribunal considered returns from 2013-14 to 2018-19, the order for the deposit might have been different.

The Standing Counsel for the respondent maintains that the Tribunal duly noted the absence of 2018-19 income tax returns and found no justification for not examining the presented documents. The High Court, refraining from delving into the dispute over the submission of current tax returns, decides to grant the appellant another chance to furnish all records before the Tribunal. This opportunity aims to enable the Tribunal to assess whether the Revenue's interests are adequately protected due to the attachment of the appellant's Rs. 3 crores property and to evaluate if the appellant's financial circumstances justify a waiver of the pre-deposit requirement.

Consequently, the High Court allows the appeal, overturns the Tribunal's order, and remands the case for a fresh review. No costs are imposed, and the related miscellaneous petition is closed. The Tribunal is directed to consider any documents the appellant presents during the upcoming hearing or subsequent dates to determine if the appellant's plea of undue hardship warrants the exercise of powers under the Second Proviso to Section 19(1) of the Foreign Exchange Management Act, 1999.

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