2017 (3) TMI 1259

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....the Income Tax Act, 1961 (the 'Act'). The impugned order directed the petitioner to deposit 15% of the disputed demand aggregating to Rs. 29.13 crores for a stay of the demand for the assessment year 2014-15 till the disposal of its pending appeal by the CIT (A). The impugned order dated 7th March, 2017 modified the earlier order dated 3rd February, 2017 of the Assessing Officer rejecting the stay application. 3. The grievance of the petitioner is that the impugned order dated 7th March, 2017 of the Principal Commissioner of Income Tax is in breach of the settled law that where the dispute in appeal is completely covered in favour of the assessee by an order of the Appellate Authority then stay of the demand be granted under Sect....

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....n into account while deciding stay application under Section 220(6) of the Act have been laid down by this Court, in various cases beginning with KEC vs. B.R. Balakrishnan and Others 251 ITR 158. In fact in the case of Mumbai Metropolitan Region Development Authority vs. The Deputy Director of Income Tax (Exemption-1(1)) & Others (Writ Petition (L) No.2348 of 2014) decided on 29th October, 2014 we had observed as under : "11. We have today, disposed of another Petition bearing No.2542 of 2014 filed by the Slum Rehabilitation Authority and set out the parameters in deciding stay application as laid down by this Court in KEC International Limited v/s. B. R. Balakrishnan 251 ITR 158; UTI Mutual Funds v/s. ITO 345 ITR 71 and UTI Mutual....

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....sessee is financially sound and viable to deposit the amount or the apprehension of the revenue of non recovery later. Thus warranting deposit. This of course, if the case is not otherwise sustainable on merits; (f) The authority concerned will also examine whether the time to prefer an appeal has expired. Generally, coercive measures may not be adopted during the period provided by the statute to go in appeal. However, if the authority concerned comes to the conclusion that the assessee is likely to defeat the demand, it may take recourse to coercive action for which brief reasons may be indicated in the order. (g) In exercising the powers of stay, the Authority should always bear in mind that as a quasi judicial authorit....