2005 (3) TMI 88 - HC - Income Tax

Power of appellate authority to grant stay during pendency of appeal - Once the appeal is pending, every court has power to pass an order of stay to do justice otherwise there will be miscarriage of justice in some cases. The matter is settled that the appellate authority even in the absence of a specific provision has power vested in it by virtue of being an authority to grant stay in appropriate cases. It is one thing to say whether stay is to be granted or not but to say that the appellate authority has no power to grant stay, in our view, does not appear to be correct one.

Summary

The High Court of Patna ruled that the appellate authority has the power to grant stay during the pendency of an appeal to prevent miscarriage of justice. The court stated that the appellate authority can exercise its discretion to grant stay and must pass a speaking order in accordance with the law. The interim stay granted by the court will be valid until the appellate authority disposes of the stay matter. The writ application was disposed of with these observations.