TMI Blog2012 (7) TMI 75X X X X Extracts X X X X X X X X Extracts X X X X ..... aim of the department then brief reasons for the same be indicated. In the present case, CIT(A) has completely ignored the parameters laid down by this court in the matter of KEC Ltd. and has passed an order without considering all the submissions of the petitioners and also failing to point out as to why the interim payment of 50% of demand is necessary in the facts of the present case. Therefore, order of CIT(A) is set aside and is directed to pass a fresh order with reasons on the petitioner’s stay application. Notices issued u/s 226(3) to the various bankers of the petitioners will continue. - Writ Petition (Lodg) No. 1424 OF 2012 - - - Dated:- 22-6-2012 - S J Vazifdar And M S Sanklecha, JJ. For Appellant : Mr. K Kapoor alongiwt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (c) Pending the disposal of petitioner s Appeals by the CIT(A), the Assistant Commissioner of Income Tax issued notices under Section 226(3) of the said Act the petitioners bankers attaching the petitioner's funds for purposes of meeting the petitioner s tax liability. The banks were required to pay over the amount belonging to the petitioners, to the Respondents. (d) In view of the above, the petitioners filed Writ Petition (Lodging) No.905 of 2012, inter-alia, challenging the notices issued to the petitioner s bankers under Section 226(3) of the said Act even though its appeals from the Assessment Orders were pending before the CIT(A). By an order dated 24.04.2012, the petitioner was permitted to file before the CIT(A), an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... contention that the CBDT Circular dated 21.08.1968 which provides that where the assessed income is substantially higher than the returned Income then the collection of tax in dispute must be stayed till the decision of the appellate authority has been ignored. In this case according to the petitioner, the assessed income is higher than the returned income by as much as 842 times for Assessment year 2004-05, 11,372 times for Assessment year 2005-06, 2,981 times for Assessment year 2006-07 and 842 times for Assessment year 2007-08. Finally he submits that the impugned order ignores the direction of this court in its order dated 24.04.2012, directing the CIT(A) to pass a reasoned order on the stay application filed by the petitioners. On t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 226(3) of the said Act. The only submissions which has been dealt with by the CIT(A) is with regard to the reliance placed by the petitioners on the CBDT Circular dated 21.08.1968 to the effect that the same has been superseded. We have not examined the correctness of the above submission. All other submissions of the petitioners have not been dealt with. Further the impugned Order even does not record the case of the petitioner for stay while directing a deposit of 50% of tax demanded. This court in the matter of KEC International Ltd. v. B.R. Balakrishnan Ors., 251 ITR 158 has laid down the parameters for granting stay pending the disposal of the Appeals. The parameters laid down in the above case have been repeatedly reiterated b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e sheet is a relevant document and both parties must be permitted to refer to the same. 7. Considering the facts of this case, though we are of the view that the impugned order needs to be set aside and the petitioner s application for stay dated 27.04.2012 be disposed of by the CIT(A) by a reasoned order after hearing the petitioners, the interest of the revenue also needs to be protected. 8. Mr. Kapoor states, on instructions, that the petitioner has an immovable property viz. a factory in Noida, the value whereof is about Rs.1.50 crores and he undertakes on behalf of the petitioners that the same will not be sold and/or encumbered in any manner till the disposal of its appeal before CIT(A). He states that the property is unencumbered ..... X X X X Extracts X X X X X X X X Extracts X X X X
|