TMI Blog2015 (7) TMI 556X X X X Extracts X X X X X X X X Extracts X X X X ..... nd any justification why the assessing authority has not considered the guidelines under the Instruction No.1914 dated 2.12.93. Moreover, it is well settled legal position that all authorities, civil, criminal and judicial, coming within the territory of the High Court, shall act in the aid of the High Court. While so, the assessing authority is bound by the order passed by the jurisdictional Tribunal without taking any stand that the Tribunal or High Courts of other States are taking a different view. Be that as it may, when the appeal has been filed by the petitioner before the appellate authority along with stay petition, keeping in mind that any further observation would have a cascading effect on the pending appeal of the petitioner, with all hesitation, is restraining to express anything on the merits, therefore, in the fitness of things, this Court, accepting the request made by the learned counsel for the petitioner for a direction to dispose of the main appeal itself, as the petitioner had received the notice dated 4.2.2015, hereby directs the second respondent-appellate authority to dispose of the appeal. Needless to mention that till then, the first respondent shall n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ner of Income Tax (Appeals), Chennai and the said appeal is pending after issuance of notice dated 4.2.2015. In this background, the grievance of the petitioner is that when the petitioner is a primary agricultural credit society and comes under the exclusion of Section 194A(viia), the disallowance brought under Section 40(a)(ia) is wholly unfounded. In any event the issue raised in the present writ petition has been decided in favour of the assessee by the jurisdictional bench of the Income Tax Appellate Tribunal 'D' Bench, Chennai in I.T.A.No.197/Mds/2013 dated 11.2.2014 (Income Tax Officer, Ward-II(3), Coimbatore v. M/s Veerakeralam Primary Agricultural Cooperative Credit Society, Coimbatore) in respect of the very same assessment year, therefore, the assessing authority cannot pass the assessment order nor refuse to grant stay during the pendency of the appeal, for the simple reason that when the petitioner, aggrieved by the impugned order of reassessment dated 10.3.2015, has preferred an appeal before the Commissioner of Income Tax (Appeals), Chennai and along with the appeal, when the petitioner has filed a petition before the assessing authority, the first respondent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pending consideration before the appellate authority, in the meanwhile, as against the demand of entire tax by the first respondent, a petition for stay was moved before the first respondent-assessing officer seeking to grant an order of stay of recovery till such time the appeal is finally heard and disposed of by the appellate authority. However, by a communication dated 20.4.2015, the petitioner was informed that the stay petition would be taken up only subject to the payment of 50% of the tax demand at once or on a proposal for making the payment of demand in installments. It was also further informed that in case of failure to respond to the said communication within a week, the stay petition would be treated as rejected and necessary coercive measures would be taken to recover the entire demand. The learned counsel further submitted that aggrieved by the demand of 50% tax as a condition precedent even for consideration of the stay petition, the petitioner again approached the second respondent-appellate authority seeking an absolute stay of the recovery proceedings pending appeal. When the appeal/stay petition has been pending consideration before the second respondent-appel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... C below. B. Stay petitions (i) Stay petitions filed with the Assessing Officers must be disposed of within two weeks of the filing of petition by the taxpayer. The assessee must be intimated of the decision without delay. (ii) Where stay petitions are made to the authorities higher than the Assessing Officer (DC/CIT/CC), it is the responsibility of the higher authorities to dispose of the petitions without any delay, and in any event within two weeks of the receipt of the petition. Such a decision should be communicated to the assessee and the Assessing Officer immediately. (iii) The decision in the matter of stay of demand should normally be taken by Assessing Officer/TRO and his immediate superior. A higher superior authority should interfere with the decision of the AO/TRO only in exceptional circumstances e.g. where the assessment order appears to be unreasonably highpitched or where genuine hardship is likely to be caused to the assesee. The higher authorities should discourage the assessee from filing review petitions before them as a matter of routine or in a frivolous manner to gain time for withholding payment of taxes. C. Guidelines for staying demand ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Revenue has tried to establish that the assessee although a credit cooperative society is carrying on banking business and is thus not eligible. In our opinion, the assessee is not a cooperative bank...'' 10. The above observation, prima facie, brings the case of the petitioner under the guidelines-C(i)(a) for staying demand, which says that if the demand in dispute relates to issues that have been decided in assessee's favour by an appellate authority or Court earlier, the demand will be stayed. While the issue appears to be clear, this Court does not find any justification why the assessing authority has not considered the guidelines under the Instruction No.1914 dated 2.12.93. Moreover, it is well settled legal position that all authorities, civil, criminal and judicial, coming within the territory of the High Court, shall act in the aid of the High Court. While so, the assessing authority is bound by the order passed by the jurisdictional Tribunal without taking any stand that the Tribunal or High Courts of other States are taking a different view. 11. Be that as it may, when the appeal has been filed by the petitioner before the appellate authority along wi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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