Implied stay power in tax appeals: appellate tribunal may suspend collection pending appeal where wide appellate authority exists.

The Madras HC treated section 23(5) of the Gift-tax Act as in pari materia with section 254(1) of the Income-tax Act and applied the broader appellate powers recognised under that provision. It held that an appellate tribunal may exercise power to grant stay of tax collection by necessary implication where the statute confers wide appellate authority, even without an express stay provision. The Tribunal therefore had jurisdiction to stay collection pending disposal of the appeal, and the challenge to its order failed.

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Issues: Whether the Appellate Tribunal, while hearing an appeal under the Gift-tax Act, had implied power to stay collection of the tax demanded pending disposal of the appeal.

Analysis: Section 23(5) of the Gift-tax Act was treated as in pari materia with section 254(1) of the Income-tax Act. On that basis, the broader appellate powers recognised in relation to section 254(1) were applied. The power to grant stay was held to arise by necessary implication, and the absence of an express provision was not treated as excluding that power.

Conclusion: The Tribunal had jurisdiction to grant stay of collection pending the appeal, and the challenge to its order failed.

Ratio Decidendi: An appellate tribunal may, by necessary implication, exercise power to grant stay pending appeal where the governing provision confers wide appellate authority and is in pari materia with a provision construed to include such power.

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