Stay granted on penalty order recovery pending appeal, emphasizing need for active pursuit.

The Tribunal granted a stay on the recovery of demand arising from a penalty order under sections 271(1)(c) and 50C until the pending appeal is resolved, emphasizing the need for the assessee to actively pursue the appeal for an early resolution. The decision was made to provide temporary relief to the assessee, with the order pronounced in an open court on 29th March 2019.

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Issues Involved: Stay petition for recovery of demand based on penalty order under section 271(1)(c) and section 50C

Analysis:
1. Stay Petition for Recovery of Demand:
The assessee, Mrs. M.Malarvizhi, filed a stay petition seeking to halt the recovery of demand arising from the penalty order under section 271(1)(c) and section 50C. The petitioner had sold two immovable properties without filing her return initially, believing there would be no capital gain. However, upon receiving a notice under section 148, she filed her return. The Assessing Officer (A.O) completed the assessment, invoking section 50C and levying a penalty under section 271(1)(c). The assessee appealed to the CIT(A), who provided partial relief. Subsequently, the assessee appealed before the Tribunal, which is pending for a hearing. The petitioner argued that there is a fair chance of success in the appeal, and enforcing the demand would cause significant loss and damage. The Departmental Representative (DR) opposed the stay, contending that since the assessee had already availed relief from the CIT(A), the demand should not be stayed.

2. Tribunal's Decision on Stay:
After hearing both parties, the Tribunal considered the circumstances of the case, noting that the demand stemmed from the penalty order and the pending appeal was scheduled for a hearing on 06.06.2019. In light of these factors, the Tribunal granted a stay on the recovery of demand until the appeal's disposal. However, the Tribunal emphasized that the assessee must actively pursue the appeal for an early resolution. The issuance of a notice was waived in this regard.

3. Conclusion:
The Tribunal allowed the stay petition for recovery of demand, providing temporary relief to the assessee until the appeal process is completed. The order was pronounced in an open court on 29th March 2019, ensuring transparency and adherence to due process in the legal proceedings.

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