Stay application under income tax law to be decided expeditiously, with interim protection against coercive recovery pending hearing.

A pending stay application under Section 220(6) of the Income Tax Act required expeditious consideration in light of a similar stay already granted for an earlier assessment year in the assessee's own case. The Court directed the Principal Commissioner to grant a personal hearing and pass a speaking order within four weeks. It also protected the assessee from coercive recovery action for the same period, ensuring interim relief pending disposal of the stay request.

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Issues: Whether the stay application filed before the Principal Commissioner of Income Tax for the assessment year under consideration should be decided expeditiously, and whether interim protection against recovery was warranted pending such decision.

Analysis: The Petition arose from a demand raised pursuant to an assessment order and a pending stay application under Section 220(6) of the Income Tax Act. Noting that a similar demand in the petitioner's own case for an earlier assessment year had already been stayed, the Court directed expeditious consideration of the pending stay application by the Principal Commissioner, with a personal hearing and a speaking order. The Court also granted limited interim protection against coercive recovery for four weeks.

Outcome: The Principal Commissioner was directed to decide the stay application within four weeks after granting a personal hearing, and the respondents were restrained from taking coercive recovery action for the same period. The petition was disposed of accordingly.

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