Interim stay of demand granted where prima facie case, financial hardship, and balance of convenience supported protection from recovery.

Interim stay of demand may be granted pending disposal of an appeal where a prima facie case, the assessee's financial position, and the balance of convenience support protection from recovery. The Tribunal noted, without expressing any view on the merits, that substantial amounts were stated to be lying in deposits with various persons. On that basis, it granted stay of the demand until disposal of the appeal and directed out-of-turn hearing of the appeal.

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Issues: Whether interim stay of demand should be granted pending disposal of the appeal.

Analysis: The Tribunal considered the existence of a prima facie case, the financial position of the assessee, and the balance of convenience. Without expressing any view on the merits, it noted that the major amounts were stated to be lying in deposits with various persons and that the appeal deserved priority hearing.

Conclusion: Interim stay of the demand was granted till disposal of the appeal, and the appeal was fixed for out-of-turn hearing.

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