TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
Use comma for multiple locations.
---------------- For section wise search only -----------------
Accuracy Level ~ 90%
of 
Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
Join Channel
Note
Bookmark
Share
Don't have an account? Register Here
of Press 'Enter' after typing page number.
Issues: Whether the rejection of the stay application solely on the ground of non-payment of 20% of the disputed demand under the CBDT instruction was sustainable, and whether stay of recovery should be granted pending disposal of the appeal.
Analysis: The governing principle applied was that the administrative instruction prescribing 20% pre-deposit is only a guideline and does not fetter the quasi-judicial authority's discretion. The stay application had to be considered independently on the facts of the case, including the existence of a prima facie case, financial stringency, and balance of convenience. As the impugned order rejected the request mechanically by treating the 20% requirement as mandatory, it suffered from non-application of mind and could not stand.
Conclusion: The rejection of stay was unsustainable and was quashed. The assessee was granted stay of recovery of the disputed demand till disposal of the appeal, and the authority was directed to dispose of the appeal within the stipulated time.
Final Conclusion: The assessee obtained relief against coercive recovery, while the appeal on the assessment was left to be decided expeditiously on merits.
Ratio Decidendi: A CBDT instruction fixing a 20% pre-deposit for stay of demand is not an inflexible mandate, and stay must be decided by the authority on an independent assessment of the facts and relevant equitable considerations.
TaxTMI 
