Tribunal Halts Recovery Measures, Sets Hearing Date for Stay Application

The Tribunal granted an early hearing and temporarily halted coercive recovery measures for stay applications related to multiple assessment years. The assessee alleged retaliatory demands by the Department due to a police case against an ITO, seeking a stay on the entire demand until appeal disposal. The Tribunal acknowledged the strained relationship but found it premature to attribute the demand solely to revenge. Despite recognizing legal precedents cited by the assessee, the Tribunal emphasized the lack of security offered and set a specific hearing date, warning against frivolous adjournment requests to maintain the stay.

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Issues:
Stay applications for asst. yrs. 1994-95, 1996-97 to 1999-2000 - Assessment of income, demand creation, security against demand, strained relation between Department and assessee, early hearing granted, no coercive steps for recovery.

Analysis:
The stay applications pertain to an assessee for multiple assessment years. The returned income and assessed income for each year differ significantly, leading to demands totaling Rs. 60,28,390, including interest. The assessee alleges that the Department's demands are retaliatory due to a police case against an ITO. Citing a High Court case precedent, the assessee seeks a stay on the entire demand until appeal disposal, emphasizing financial hardship and inability to provide security.

The Department opposes absolute stay, highlighting the complexity of the case and strained relations. The Tribunal acknowledges the contentious relationship but deems it premature to attribute the demand solely to revenge. While recognizing the supportive legal precedents cited by the assessee, the Tribunal notes the lack of security offered. Consequently, an early hearing is granted for all related appeals, with a directive to halt coercive recovery actions until then. The Tribunal sets a specific hearing date, warning against frivolous adjournment requests, which could lead to vacating the stay and removal of appeals from priority.

In conclusion, the Tribunal disposes of the stay applications by granting an early hearing and temporarily halting coercive recovery measures, subject to adherence to hearing schedules.

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