Conditional stay of tax recovery may be granted on prima facie merits, hardship, and safeguards for the Revenue.

Conditional stay of recovery may be granted where the assessee shows a prima facie case on the additions, financial hardship, and circumstances warranting interim protection, while the Revenue's interest is safeguarded through partial payment or other conditions. The balance demand may be kept in abeyance for a limited period or until disposal of the appeal, whichever is earlier, and the assessee may be required to cooperate in expeditious hearing. The relief is thus partial and time-bound, balancing interim protection for the assessee against recovery interests of the tax administration.

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Issues: Whether stay of recovery of the outstanding tax demand was to be granted pending disposal of the appeal.

Analysis: The Tribunal considered the assessee's prima facie case on the merits of the additions, the financial position, and the competing interests of the Revenue. It found that mitigating circumstances justified protection against immediate recovery, but balanced that relief with an additional payment to secure the Revenue's interest. The stay was therefore made conditional, with the balance demand kept in abeyance for a limited period or until disposal of the appeal, whichever was earlier, and subject to cooperation in expeditious hearing.

Conclusion: Stay of recovery of the balance outstanding demand was granted conditionally and partially in favour of the assessee.

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