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Issues involved: Challenge to impugned order passed by Income-tax Appellate Tribunal regarding stay of dues, exercise of discretionary power by the Tribunal, availability of alternative remedies for the assessee.
Challenge to Impugned Order: The petitioner challenged the order passed by the Income-tax Appellate Tribunal, contending that the Tribunal did not properly exercise its discretion in granting stay of dues. The Tribunal, relying on previous decisions, held that the discretionary power should not be exercised unless all remedies available to the assessee are exhausted. Exercise of Discretionary Power: The High Court emphasized that the Tribunal, being vested with discretionary power, should not refrain from exercising it merely on the basis of the availability of alternative remedies. It was clarified that the authority must exercise discretion judiciously, either in favor of or against the assessee, without disregarding the need to protect the authority levying the tax. Availability of Alternative Remedies: The Court highlighted that the Tribunal's decision to withhold the exercise of discretion based on the existence of other remedies for the assessee was misconceived. It was noted that the Tribunal failed to properly appreciate the relevant legal principles and, as a result, there was a miscarriage of justice in this case. Remand and Disposal: The High Court set aside the Tribunal's order and remanded the matter for reconsideration of the application for stay, emphasizing that the Tribunal should exercise its discretion in accordance with the law. The Court directed the Tribunal to dispose of the stay application within three months from the date of the order, with a stay of recovery proceedings until the application is decided. Conclusion: The judgment clarified the principles governing the exercise of discretionary power by statutory authorities like the Tribunal and underscored the importance of judicious decision-making in such matters. The Court's decision aimed to ensure a fair and just consideration of the petitioner's request for stay of dues, emphasizing the need for proper application of legal principles in such cases.
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