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2023 (1) TMI 324 - HC - Income TaxStay of demand - recovery proceedings - petitioner has not paid the prescribed 20% of the disputed amount till the date of passing of the impugned order - HELD THAT:- This Court finds that the impugned order cannot be sustained inasmuch despite the specific directions of this Court [2022 (2) TMI 1334 - MADRAS HIGH COURT] to take into account the trinity test, the impugned order has been made overlooking the same in gross disregard to the above directions. Though, normally discretionary orders are not interfered with under Article 226 of the Constitution of India, however, discretionary orders are amenable to Writ jurisdiction, and would warrant interference, if it suffers from the vice of being perverse or arbitrary. The impugned order is arbitrary and perverse inasmuch as it has been made in gross disregard to the directions of this Court [supra] inasmuch as the trinity principles has been ignored. Hence, the impugned order is set aside, the respondents are directed to pass fresh orders in the stay application filed, keeping in mind the trinity principles laid down by this Court in the case of Queen Enterprises 2021 (4) TMI 609 - MADRAS HIGH COURT and the case of Kannammal 2019 (3) TMI 1 - MADRAS HIGH COURT The stay application should be disposed of within a period of six weeks from the date of receipt of a copy of this order, until the stay application is disposed of, no further proceedings shall be taken against the petitioner.
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