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2014 (11) TMI 852 - HC - Income TaxStay application stay of demand of ₹ 53.71 Crores Held that:- The parameters for disposing of an application for stay pending disposal of Appeal before the Appellate Authority under the Act are fairly settled as decided in KEC International Limited v/s. B. R. Balakrishnan [2001 (3) TMI 32 - BOMBAY High Court] - the manner in which the AO has disposed of the application for stay by order dated 30th May, 2014 is in complete breach of the directions of the Court - besides in any event the tests applied to dispose of the stay application by the order dated 30th May, 2014 are not at all germane to disposing of the stay application - though there was substance in the assessee's claim of Charitable purposes, keeping in view the fact that the Petitioner's registration u/s 12A of the Act has been cancelled assessee is not entitled to the benefit of exemption u/s 11 of the Act for the subject AY 2011-12 - unconditional grant of stay of the demand till the disposal of the appeal by the CIT(A) would not be warranted. However where the issue is not concluded one way or the other by a decision of a higher forum, then the Authority considering the stay application would have to prima facie consider on the face of the impugned order, the likelihood of the applicant succeeding in appeal - This need not be detailed examination but a first look examination and on that basis it is for the authority to exercise his discretion in law and grant such stay depending upon likelihood of success in appeal - At this stage various other factors such as financial hardship, balance of convenience etc. would enter into consideration to decide the terms of the stay of demand, if any assessee is directed to deposit 10% of the amount of ₹ 53.71 Crores as pre-deposit, there would be a complete stay of recovery of balance demand raised u/s 156 of the Act for the Assessment Year 2011-12, till the disposal of the case Partial stay granted.
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