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2024 (2) TMI 549 - HC - Income TaxStay of demand - order directed the petitioner to pay 20% of the disputed demand entirely on the basis of the CBDT Instruction No.1914 dated 31.07.2017 (Instruction No.1914) - petitioner submitted that the appellate authority is required to take into consideration the principles relating to consideration of a stay application and cannot impose conditions merely by referring to Instruction No.1914 - HELD THAT:- Instruction 1914 sets out guidelines to be taken into account while deciding stay applications. As is evident on examining such guidelines, the discretion of the appellate authority remains and it is not mandated that in all cases 20% of the disputed tax demand should be pre-deposited. This aspect was noticed by this Court in the Order in Kannammal [2019 (3) TMI 1 - MADRAS HIGH COURT] wherein, the appellate authority was directed to take into account the classical principles relating to the consideration of stay petitions. We find that the appellate authority has not recorded any reasons for the conclusion that the assessee should pay 20% of the disputed tax demand. Therefore, the order impugned herein calls for interference. Hence, the impugned order is quashed and the matter is remitted to the appellate authority for re-consideration of the stay application after providing a reasonable opportunity to the petitioner. While re-considering such stay application, the appellate authority shall take into account the existence of a prima facie case, the financial condition of the assessee and the balance of convenience and thereafter dispose of the stay application within a maximum period of two months from the date of receipt of a copy of this order.
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