Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2015 (12) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (12) TMI 116 - HC - Income TaxStay application - recovery proceedings - Held that:- It is true that while considering an application for stay, it is neither expedient nor appropriate for the Court to initiate a detailed enquiry to find out whether the stand of the assessee is on solid ground, because expression of a final opinion on the merits at that stage, without examining the entire material and affording full opportunity of hearing, is likely to cause prejudice to either side. But, at the same time, the Court is required to consider whether, on the basis of the material placed before it, a prima facie case for grant of stay is made out or not. Similarly, the Court has to consider whether on the basis of the pleadings and the material placed before it, undue hardship is likely to be caused to the assessee in case the stay is declined or when a conditional stay is granted, the conditions imposed are so burdensome that the assessee is unable to comply with the same and, thus, rendering the right of appeal non-existent. Needless to point out that the power of stay by the Court is not likely to be exercised in a routine manner or as a matter of course in view of the special nature of taxation and revenue laws. It will only be when a strong prima facie case is made out that the court will consider whether to stay the recovery proceedings and on what conditions and the stay will be granted in most deserving and appropriate cases where the court is satisfied that the entire purpose of the appeal will be frustrated or rendered nugatory by allowing the recovery proceedings to continue during the pendency of the appeal. In the present case, applying the aforesaid guiding principles and keeping in view the totality of facts and circumstances of the case as noticed herein before, once the petitioner has already been granted opportunity to pay the outstanding demand in four installments as noted above and no prejudice has been demonstrated to be caused to the assessee on that account, there appears to be no error in the impugned order passed by respondent No.2. Further, learned counsel for the petitioner has also not been able to show that the order is unjustified. Consequently, finding no merit in the petition, the same is hereby dismissed.
|