TMI Blog1994 (3) TMI 72X X X X Extracts X X X X X X X X Extracts X X X X ..... titioner filed appeals before the Commissioner of Income-tax (Appeals), Kanpur, for both the years, which are said to be still pending. The petitioner approached the assessing authority to get the stay order, then the assessing authority stayed the demand till November 30, 1993, or till the disposal of appeals before the Commissioner of Income-tax (Appeals), whichever was earlier. The stay order stood terminated on November 30, 1993, as the appeals could not be decided till then. Thereafter, the petitioner went up to the Commissioner of Income-tax, Kanpur, seeking extension of the stay order till the decision of the appeals pending before the Commissioner of Income-tax (Appeals). The Commissioner of Income-tax rejected the prayer of the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Tribunal prior to February 12, 1970. However, sub-section (6) of section 220 of the Act states that where an assessee has presented an appeal under section 246, the Assessing Officer may, in his discretion, and subject to such conditions as he may think fit to impose in the circumstances of the case, treat the assessee as not being in default in respect of the amount in dispute in the appeal, even though the time for payment has expired as long as such appeal remains undisposed of. The rationale of this provision is that an assessee should not be unnecessarily inconvenienced during the pendency of the appeal and, therefore, sub-section (6) says that the assessee will not be treated as in default while the appeal is pending against the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with or without imposing limitations. Unless there is an exclusionary provision, power to grant stay will ordinarily be deemed to have been conferred on the appellate authorities. Before rule 35A was inserted in the Income-tax (Appellate Tribunal) Rules, 1963 (for short, " the Rules "), with effect from February 12, 1970, conferring power on the Income-tax Appellate Tribunal to grant stay, a question came up before the Supreme Court in ITO v. M. K. Mohammed Kunhi [1969] 71 ITR 815 ; AIR 1969 SC 430, whether or not the Appellate Tribunal possessed power to grant stay. Interpreting section 255 of the Act, the Supreme Court observed : " Section 255(5) of the Act does empower the Appellate Tribunal to regulate its own procedure, but it is ve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ition fails and is dismissed in limine with the observations that if the petitioner makes a stay application within ten days from today, then the same will be decided by the Commissioner of Income-tax (Appeals), respondent No. 4, within two weeks from the date a certified copy of this order is produced before him by the petitioner, who undertakes to produce the same within ten days from today. If such application is made, as aforesaid, then until the decision of such application, no coercive measures will be taken for recovery of tax against the petitioner. If the petitioner fails to take steps, as aforesaid, then the stay order will stand vacated automatically. A copy of this order be given to counsel for the parties, on payment of usu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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