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2022 (3) TMI 783 - HC - Income TaxStay of demand - condition precedent for the grant of stay of the demand - HELD THAT:- In normal course, if an appeal is filed, which is pending, it is open to the assessee to make an application for stay, even before the Assessing Authority, as there is no condition precedent as a prior deposit for entertaining the appeal before the Appellate Authority and in such case, the Assessing Authority can use his discretion, of course by imposing certain conditions, can treat the assessee is not liable to to pay the tax for the present, that means a stay can be granted. The said stay cannot be granted by way of blanket stay, as the provision namely, Section 220 (6) of the Act makes it mandatory that a condition shall be imposed, of course from the discretion of the Assessing Authority. Petitioner has missed to file any such application in respect of three Assessment Years, i.e., 2012-13, 2015-16 and 2016-17. In all these years, the Appeal is now pending before the ITAT. Out of these three Assessment Years, for AY 2012-13, as stated above, the petitioner has made an unsuccessful attempt to seek for stay. Even against the said order passed by ITAT no further appeal was filed by way of Tax Case Appeal before this Court. When that being the situation, the assessee now come forward to make payment, which can be taken as a condition for making some interim arrangement, till the petitioner approaches the appropriate forum, to seek for stay of the demand by filing necessary application. Dispose of this writ petition with the following orders : (i) That the petitioner shall make payment of 20% of the demand in respect of AY 2015-16, 2016-17 and 2017-18 and 30% of the demand for AY 2012-13, within a period of four weeks from today. (ii) On such condition, there shall be an order of stay for a period of two months, within which, the petitioner shall approach either the ITAT or the CIT (Appeals) or the Assessing Authority as the case may be in respect of AY 2015-16 to 2017-18. (iii) Insofar as AY 2012-13 is concerned, such a course of action can be adopted by the petitioner assessee against the order passed by the ITAT in his earlier application for stay by filing appropriate appeal before the forum concerned, in accordance with law. (iv) In view of the stay granted, after making the payment, as indicated above, the attachment made in respect of the Bank Accounts can be lifted by the respondent Revenue. (v) It is made clear that, if the petitioner assessee has not complied with the payment schedule as indicated above, the stay granted now through this order shall stand automatically vacated without further reference to this Court for any further orders.
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