TMI Blog2007 (3) TMI 239X X X X Extracts X X X X X X X X Extracts X X X X ..... J. Naresh Kumar for the respondent. JUDGMENT K. Raviraja Pandian J.— The writ petition is filed seeking for the relief of issuance of a writ of certiorarified mandamus to call for the records of the first respondent in Coy. WIV (1)/AACCM 5458M/500-M/2004-05. Stay relating to the application made by the petitioner for stay of demand under section 220(6) of the Income-tax Act, 1961, and quash the order dated March 5, 2007, rejecting the stay petition and direct the first respondent to pass orders thereon after affording opportunity of hearing and to grant stay of demand relating to the assessment order for the assessment year 2004-05, pending disposal of the appeal before the second respondent. 2. The petitioner is a private l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arbitrarily pitched at high figures and that the collection of disputed demands as a result thereof was also not stayed in spite of the specific provision in the matter in section 220(6) of the Income-tax Act, 1961. 2. The then the Deputy Prime Minister had observed as under : '. . . where the income determined on assessment was substantially higher than the returned income, say, twice the latter amount or more, the collection of the tax in dispute should be held in abeyance till the decision on the appeals, provided there were no lapse on the part of the assessee.' 3. The Board desires that the above observations may be brought to the notice of all the Income-tax Officers working under you and the powers of stay of recovery in such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er cannot be appreciated. When the petitioner has relied on the Department's own guidelines, the Assessing Officer would have rejected the circular by giving reasons for coming to the conclusion that the circular would not be applicable to the petitioner or accept the same and grant the relief as prayed for by the petitioner. Without doing so, by simply saying that the assessee had no valid reason for the grant of stay order cannot be legally sustainable. It is submitted across the Bar that after passing of the assessment order, the Assessing Officer has forcibly withdrawn a sum of Rs. 7.5 lakhs from the bank account of the petitioner. The said payment is recorded. 8. Having regard to the abovesaid facts and circumstances of the case, w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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