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2019 (5) TMI 435 - HC - Income TaxStay of demand - conditional stay - Recovery of outstanding tax demands - payment of 20% of the disputed demand to assure stay - HELD THAT:- As decided in MRS. KANNAMMAL VERSUS INCOME TAX OFFICER WARD 1 (1) TIRUPUR [2019 (3) TMI 1 - MADRAS HIGH COURT] The existence of a prima facie case for which some illustrations have been provided in the Circulars themselves, the financial stringency faced by an assessee and the balance of convenience in the matter constitute the ‘trinity’, so to say, and are indispensable in consideration of a stay petition by the authority. The Board has, while stating generally that the assessee shall be called upon to remit 20% of the disputed demand, granted ample discretion to the authority to either increase or decrease the quantum demanded based on the three vital factors to be taken into consideration. The petitioner will appear before the respondent Assessing Officer on 02.04.2019 along with copy of his stay application as well as all materials in support of the request for stay and the application shall be disposed of within two weeks from 02.04.2019, i.e on or before 16.04.2019. It is brought to our attention that, subsequent to the passing of the impugned order, notices under Section 226(3) of the Income Tax Act, 1961 have been issued to Karur Vysya Bank, Valasaravakkam Branch, Axis Bank, Virugambakkam Branch, City Union Bank, Mandaveli Branch, HDFC Bank, Saligramam Branch, Indian Bank, Ayanavaram and Perambur Branches, all dated 06.03.2019 attaching the accounts of the petitioner therein. The attachments will continue, subject to the orders passed by the 2nd respondent in the stay application and the Banks shall not appropriate any balance until orders are passed in the stay application. Status quo, as on date to be maintained in regard to further recovery, till 16.04.2019 or date of order to be passed in the stay application, whichever is earlier.
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