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2014 (8) TMI 485 - HC - Income TaxRecovery steps initiated - Quantum appeal and stay application pending – Held that:- There is also no extenuating circumstance stated which would effectively defeat the recovery, if delay is caused and the recovery is kept in abeyance till the Appellate Authority considers the stay application – Relying upon KEC International Ltd. v. B.R.Balakrishnan [2001 (3) TMI 32 - BOMBAY High Court] some broad parameters were laid down for regulating the consideration of stay applications, whether it be in a statutory appeal or u/s 220(6). No expedient reason why immediate recovery should be resorted to - assessee is a running institution and there is no threat of it deliberately thwarting recovery and thus causing prejudice - garnishee proceedings were initiated and notice was issued to the assessee u/s 226(3)(iii) of the Act and a major portion of the demand has now been recovered from the assessee - the recovery steps initiated is definitely capricious - the assessee had remedies which they did not avail of and no violation of statutory compliance is discernible - taking into account the fact that appeal is pending before the FAA - a major portion of the demand has now been satisfied, there shall be no further recovery steps initiated till the appeal is disposed of – Decided in favour of Assessee.
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