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Challenged assessment orders for stay of demand; Appellate Authorities not bound by office memoranda The petitioner challenged assessment orders and demand notices, seeking a stay of demand based on an office memorandum requiring a 20% deposit. The court ...
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Challenged assessment orders for stay of demand; Appellate Authorities not bound by office memoranda
The petitioner challenged assessment orders and demand notices, seeking a stay of demand based on an office memorandum requiring a 20% deposit. The court emphasized that Appellate Authorities are not bound by such memoranda and have discretionary powers to grant stays independently. The judge directed the petitioner to apply for stay before the Appellate Authority, which was instructed to decide within two months and given the liberty to consider the appeal directly if needed. The writ petition was disposed of accordingly.
Issues: 1. Challenge to assessment order, demand notices, and communication. 2. Validity of office memorandum directing deposit for stay of demand. 3. Applicability of office memorandum on Appellate Authorities. 4. Judicial observations on granting stay pending appeal.
Analysis:
1. The petitioner challenged an assessment order, demand notices, and communication through a writ petition despite having already filed an appeal before the first respondent. The petitioner was directed to deposit 20% of the total demand based on an office memorandum for grant of stay of the demand notice.
2. The office memorandum dated 29/2/2016, revised on 31/7/2017, required a 20% deposit for granting a stay of the demand imposed by the Income Tax Officer. The petitioner relied on judicial precedents to argue that the Appellate Authorities grant stay only upon depositing 20% of the entire demand as a pre-deposit.
3. The learned Standing Counsel contended that the Appellate Authorities, being quasi-judicial bodies, are not bound by office memoranda. He emphasized that the authorities must consider stay applications independently, without being directed by any office memorandum to make pre-deposits.
4. The judgment highlighted that the Appellate Authorities have discretionary powers and are not bound by office memoranda. Referring to a High Court of Delhi case, it was noted that authorities must independently decide on stay applications. The judgment also differentiated a Kerala High Court case where no deposit was insisted upon due to unique circumstances.
In conclusion, the judge advised the petitioner to file an application for stay before the Appellate Authority for appropriate consideration. The Appellate Authority was directed to pass orders within two months of receiving the application. Additionally, the Authority was granted liberty to consider and decide on the appeal itself if deemed necessary. The writ petition was disposed of accordingly.
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