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2021 (4) TMI 1296 - HC - Income TaxStay of recovery - absolute stay - assessee-in-default u/s 220(3) - HELD THAT:- Firstly, the CBDT instructions No.95 dated 21.08.1969 on which reliance is placed to contend that absolute stay should be granted, is no more in force and stands superseded by instruction no. 1914 dated 28.07.2020. Secondly, by the CBDT instruction No.1914 dated 28.07.2020, the authorities under the Act are conferred power to grant stay pending appeal before the appellate forum under the Act; and it is stated therein that the authority in order to protect the interests of revenue can grant stay by directing payment of 20% of the demand. Authority can direct payment of even lesser amount. As contended before us that even a direction to pay the 1% of the demand raised by the assessing officer would cause undue hardship and irreparable loss to the petitioner, and that the authorities have not been able to recover any part of the demand raised on the petitioner, because of it’s financial stringency, the said submission does not appeal to this Court, as mere failure of the authorities to recover any amount cannot be considered as financial stringency of the petitioner. The 1st respondent, having regard to the facts of the case and the material placed on record, granted conditional stay, which the petitioner failed to comply with at the first instance; and even thereafter the 1st respondent, by considering the request of the petitioner, granted further time for making the conditional payment to commence from 10th February, 2021. Thus, the petitioner failed to comply either order dt. 01.03.2020 or order dt. 03.02.2021. 1st respondent, having considered the request of the petitioner, granted time to make conditional payment in installments commencing from 10.02.2021, beyond the period indicated by the petitioner. Even this the petitioner failed to comply with and only as an after thought filed the present Writ Petition on 15.02.2021, after having committed default in payment of the revised 1st installment due on 10.02.2021. Since, the 1st respondent has passed the impugned order dated 03.02.2021 by taking all the facts into consideration, including the request of the petitioner as noted above by way of reconsideration of its earlier order of March, 2020, and the said order passed by the 1st respondent is in exercise of discretionary powers, this court is of the view that no valid ground has been made out for interference with it. Writ Petition is dismissed at admission stage.
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