Court Orders Prompt Stay Application Process with Timely Disposal

The Court directed the respondents to provide a link for the petitioner to upload a stay application within four weeks. The petitioner must upload the application within two weeks of receiving the link. The Competent Appellate Authority was instructed to promptly consider and dispose of the stay application within six weeks of its upload. Coercive proceedings following the assessment order were stayed until the completion of the directed stay application process. The judgment highlighted the importance of timely resolution of the stay application while allowing the appeal proceedings to continue. The writ petition was disposed of with clear directives for the stay application process.

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Issues:
Challenge to assessment order under Income Tax Act, 1961 - Opportunity for stay petition before appellate authority - Prejudice due to proposed recovery proceedings during pendency of appeal - Direction to provide link for uploading stay petition - Timely disposal of stay application by Competent Appellate Authority.

Analysis:
The petitioner challenged an assessment order denying exemption under Section 11 of the Income Tax Act, 1961 for the assessment year 2018-2019. The appeal was filed before the National Faceless Appeal Centre without seeking a stay as there was no threat of recovery proceedings at that time. The grievance raised was the proposed initiation of recovery proceedings during the appeal, causing prejudice unless the appellate authority either expeditiously completes proceedings or allows for a stay petition. The Court noted the lack of opportunity to upload stay petitions post the National Faceless Appeal Scheme's commencement.

In response to similar cases causing prejudice to assessees, the Court directed the respondents to provide a link for the petitioner to upload a stay application within four weeks of the judgment's receipt. The petitioner must upload the stay application within two weeks after receiving the link. The Competent Appellate Authority was instructed to consider and dispose of the stay application promptly, within six weeks of the application's upload. Despite the stay application, the appellate authority retains the discretion to decide on the appeal itself. Coercive proceedings pursuant to the assessment order shall be stayed until the directed stay application process is completed.

The Court emphasized the importance of timely resolution of the stay application while allowing the appellate authority to continue with the appeal proceedings parallelly. The judgment concluded by disposing of the writ petition, setting out clear directives for the provision of a link for stay application upload and ensuring the Competent Appellate Authority's prompt consideration of the stay application to prevent prejudice to the petitioner.

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