Court allows writ appeals, suspends tax recovery pending appeal, directs prompt consideration of appeals.

The Court allowed the writ appeals, setting aside the single Judge's judgment that required payment of 10% of the disputed tax amount pending appeal. The Court directed the Commissioner of Income Tax (Appeals) to promptly consider and dispose of the statutory appeals following the Full Bench decision, suspending tax recovery pending appeal.

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Issues involved: Challenge against interim order for payment of disputed tax amount pending appeal.

Analysis:
1. The writ appeals were considered together as the issues involved were identical. The challenge was against the interim order by the Commissioner of Income Tax (Appeals) requiring payment of 20% of the disputed tax amount pending appeal. The single Judge had reduced this condition to 10%, leading to the filing of these appeals.

2. The appellants argued that the liability to pay income tax assessed was decided by a Full Bench judgment, which stated that the appellate authority could only remand the matter for a fresh inquiry. They contended that insisting on payment pending appeal could cause hardships to the banks. On the other hand, the respondent's counsel argued that the part payment for granting stay was at the discretion of the appellate authority.

3. The Court, considering the peculiar aspect based on the Full Bench decision, opined that the insistence on payment of a portion as a condition for granting stay was not necessary in these cases. Therefore, the impugned judgments were to be modified.

4. Consequently, the writ appeals were allowed, setting aside the single Judge's judgment. The Commissioner of Income Tax (Appeals) was directed to consider and dispose of the statutory appeals promptly, following the Full Bench decision, and to suspend tax recovery pending appeal.

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