1997 (11) TMI 86

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....livered by P. VENKATARAMA REDDI J.---Heard both counsel at the stage of admission. This writ petition is filed seeking for a direction to the second respondent not to take coercive steps for recovery of interest of Rs. 5,62,188 levied under section 220(2) of the Income-tax Act for the assessment years 1988-89 and 1989-90 pending the disposal of R. C. No. 8 of 1994 on the file of this court. ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....iate case, if the assessee feels that a stay of recovery pending disposal of the reference is necessary or is in the interest of justice, then, the assessee is entitled to apply before the appellate authority to grant a stay until disposal of the reference by the High Court or until such time as the appellate authority thought fit." It was also pointed out that in case the appellate authority c....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....which limits the power of the Tribunal only to stay the recovery of tax but not the interest due thereon. It is to be noted that the interest is linked up with tax and if the reference is answered in favour of the assessee and the tax demand is set aside, the interest levied under section 220(2) will be consequentially wiped out. That being the case, we are not in a position to appreciate as to....