Priority hearing in tax appeal declined, but interim protection preserved pending consideration of a stay application.

Priority hearing of a pending appeal was sought on the basis of CBDT guidance allowing out-of-turn consideration in genuine and exceptional hardship cases, including high-demand matters. The High Court declined immediate priority disposal, noting that several high-pitched and regular appeals were already pending and that granting special precedence would be unfair to other assessees awaiting hearing. It nevertheless granted limited interim protection by keeping recovery proceedings in abeyance to enable the petitioner to pursue a stay application before the appropriate authority, which was directed to be decided on merits and in accordance with law if filed within the stipulated time.

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Issues: Whether the petitioner was entitled to priority or out of turn hearing of the pending appeal, and whether interim protection against recovery proceedings was warranted.

Analysis: The request for priority hearing was considered in the light of the Central Board of Direct Taxes circular permitting out of turn consideration in genuine and exceptional circumstances, including cases involving high demand and genuine hardship. At the same time, the pendency of several high pitched appeals and regular appeals was taken into account, and it was held that it would be unfair to grant special priority by overlooking other assessees awaiting hearing. The petitioner was therefore not granted a direction for immediate out of turn disposal of the appeal, but was given liberty to seek stay of recovery before the appropriate authority, with a direction that any such application filed within the stipulated period be decided on merits in accordance with law.

Conclusion: The request for priority hearing was not accepted, but limited interim protection was granted by keeping recovery proceedings in abeyance pending consideration of an appropriate stay application.

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