2003 (4) TMI 499 - AT - Income Tax

Summary

Issues:
Stay Application filed by the petitioner-assessee-appellant for assessment years 1994-95 to 1996-97, Permissibility of filing one Stay Application for multiple assessment years and appeals, Merits of the Stay Application regarding the outstanding demand, Legal basis for granting stay on demand, Directions for early disposal of related appeals.

Analysis:
The Stay Application was filed by the petitioner-assessee-appellant for assessment years 1994-95 to 1996-97. The petitioner sought to stay the outstanding demand against them for the mentioned years. The issue arose regarding the permissibility of filing one Stay Application for multiple assessment years and appeals. The petitioner contended that under one enactment, they could file one Stay Application irrespective of the number of appeals and assessment years involved. The Revenue objected to this, but the petitioner relied on a decision of ITAT, Bombay, supporting their position. The Tribunal considered the arguments and the precedent cited, ultimately holding in favor of the petitioner, allowing the Stay Application for all three assessment years.

Regarding the merits of the Stay Application, the petitioner argued that the entire outstanding demand was disputed in the appeals, with a significant portion already paid. They highlighted financial constraints and disputed high assessed income compared to the returned income. On the other hand, the Revenue pointed out that the demand resulted from the Assessing Officer's order, confirmed by the first appellate authority, and emphasized the non-payment despite previous rejections. The Tribunal considered the arguments, legal precedents, and the material on record. Citing a judgment of the Rajasthan High Court, the Tribunal held that when the assessed income is significantly higher than the returned income, the demand should be stayed. Accordingly, the Tribunal granted a stay on the outstanding demand for a specified period or until the disposal of related appeals, whichever is earlier.

In addition to granting the stay, the Tribunal directed the Registry to prioritize the related appeals for an early hearing, specifying a timeframe for the same. The Tribunal emphasized that no adjournments should be sought by the petitioner or their authorized representative. The Stay Application was allowed, providing relief to the petitioner-assessee-appellant in the specified assessment years.