TaxTMI 
TaxTMI 
1998 (7) TMI 654
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....hould have been taken into consideration while passing the order on the stay application. 2.. It is stated that no reasons have been assigned by the appellate authority and the order of the appellate authority is contrary to the decision of this Court in the case of B.M. Moidin Kunhi v. State of Mysore [1971] 27 STC 154 wherein it was observed: "In the instant case, the assessee in his application for stay had submitted that he had no cash resources, that the amount involved in the three appeals was large and that he was offering security of immovable properties situated in two villages of Sullia Taluk in South Kanara District. The order made under the proviso to sub-section (3) being an appealable order, the appellate authority ought....
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....ty not in dispute in appeal. Clause (b) of sub-section (3) also provides for stay of the recovery of the disputed tax and penalty if the appellant furnishes sufficient security to the satisfaction of the appellate authority. The security to be furnished should be in any one of the forms prescribed in rule 30-B. In exercise of the discretion of granting stay of recovery of disputed tax or penalty pending the appeal, the appellate authority should exercise the discretion in accordance with settled judicial principles. The question which the appellate authority should consider is whether the security offered by the assessee is sufficient. Where the assessee offers security of immovable property, the appellate authority should consider whether ....
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....ct IV(2) v. Murlidhar Sarda [1975] 99 ITR 485 (Cal) and Income-tax Officer, Lucknow v. S.B. Singar Singh & Sons [1970] 75 ITR 646 (All.). In the matter of Bhanwar Lal Jain v. State of Rajasthan [1980] 45 STC 92 (Raj), it was observed: "Where the petitioner-dealer filed an application before the Commissioner for stay of recovery of the whole amount of the tax assessed under the Rajasthan Sales Tax Act, 1954, but the Additional Commissioner passed an order in a cyclostyled form staying only the recovery of a part of the tax assessed and stated therein that he had looked into the assessment order and the grounds of appeal as also the stay application: Held, that under the third proviso to section 11(3) of the Act, the Additional Commissi....
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....mposed on the assessees as a matter of course, the revenue will be put to great loss because of the inordinate delay in the disposal of appeals by the Appellate Tribunal. It is needless to point out that the power of stay by the Tribunal is not likely to be exercised in a routine way or as a matter of course in view of the special nature of taxation and revenue laws. It will only be when a strong prima facie case is made out that the Tribunal will consider whether to stay the recovery proceedings and on what conditions, and the stay will be granted in most deserving and appropriate cases where the Tribunal is satisfied that the entire purpose of the appeal will be frustrated or rendered nugatory by allowing the recovery proceedings to conti....
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....s not an appeal from a decision but a review of the manner in which the decision is made. It will be erroneous to think that the court sits in judgment not only on the correctness of the decision-making process but also on the correctness of the decision itself." 7.. In the matter of Kishan Lal v. Union of India [1998] 230 ITR 85 (SC) where the matter was involved with regard to section 220(2A) of the Incometax Act, 1961, for reduction/waiver of interest, it was observed: "..............Even though in the said sub-section it is not stated that any reasons are to be recorded in the order deciding such an application, it appears to us that it is implicit in the said provision that whenever such an application is filed the same sh....