High Court upholds rejection of stay petition under Section 220(6) of Income Tax Act, directs fresh application to appellate authority.

The High Court declined to interfere with the rejection of the petitioner's stay petition under Section 220(6) of the Income Tax Act, advising the petitioner to file a fresh application for stay before the appellate authority. The appellate authority was directed to consider the application promptly within two months. The court's decision allowed the petitioner's appeal process before the Commissioner of Income Tax (Appeals) to continue, providing the petitioner with the chance to seek a stay on the demand through the proper appellate channels.

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Issues:
1. Assessment Order by National e-Assessment Center
2. Appeal before Commissioner of Income Tax (Appeals)
3. Demand Notice issued by respondent no.1
4. Rejection of stay petition under Section 220(6) of the Act
5. Writ Petition challenging rejection of stay petition

Analysis:

1. The petitioner, an assessee under the Income Tax Act, 1961, was assessed by the National e-Assessment Center, Delhi for the Assessment Year 2018-19. The Assessment Order passed on 20.04.2021 made additions to the petitioner's income amounting to Rs.90,75,04,390.

2. Subsequently, the petitioner preferred an appeal before the Commissioner of Income Tax (Appeals), National Faceless Appeal Center on 12.08.2021, which is currently pending.

3. Respondent no.1 issued a Demand Notice on 04.10.2021, requiring the petitioner to pay Rs.35,18,16,080 in accordance with the Assessment Order.

4. The petitioner filed a petition for stay on 02.12.2021 under Section 220(6) of the Act before respondent no.1. However, the stay petition was rejected on 08.12.2021 on the grounds that the petitioner had not paid 15% of the disputed demand, rendering them ineligible for a stay of demand.

5. In response to the rejection of the stay petition, the petitioner filed a Writ Petition challenging the decision. The High Court, after hearing both parties, declined to interfere with the order rejecting the stay petition. The court suggested that the petitioner could file a fresh application for stay before the appellate authority, i.e., respondent no.3, within fifteen days. The appellate authority was directed to consider the application expeditiously within two months from the date of filing and in accordance with the law. The Writ Petition was disposed of without any costs awarded.

6. The court's decision implied that the petitioner's appeal process before the Commissioner of Income Tax (Appeals) should be allowed to proceed, and the petitioner has the opportunity to seek a stay on the demand through the appropriate appellate channels. Any pending miscellaneous applications in the Writ Petition were deemed closed as a result of this judgment.

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