Prompt disposal of stay petitions shields taxpayers from coercive recovery until appellate relief is decided.

Pending stay petitions filed with statutory appeals should be considered promptly where recovery action may proceed before disposal. The High Court directed the appellate authority to dispose of the assessee's stay petition within three months after hearing the assessee, and to record reasons if any conditional stay was imposed. Further proceedings pursuant to the assessment order were deferred until orders were passed on the stay petition, thereby protecting the assessee from coercive recovery in the meantime.

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Issues: Whether directions were required for early disposal of the assessee's stay petition pending before the appellate authority and whether coercive proceedings should remain deferred until such disposal.

Analysis: The writ petition was moved on the ground that the stay petition filed along with the statutory appeal had remained pending since 3.6.2023 and that recovery pursuant to the assessment order might be taken before the stay request was decided. The Court found it appropriate to direct prompt consideration of the stay petition, require reasons if any conditional stay was proposed, and protect the assessee from further proceedings in the meantime.

Outcome: The second respondent was directed to dispose of the stay petition within three months after hearing the petitioner, with reasons to be stated for any conditional stay, and all further proceedings pursuant to the assessment order were deferred until orders were passed on the stay petition.

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