2014 (11) TMI 297 - HC - Income Tax

Stay petition u/s 220(6) Prima facie case to grant stay or not Held that - When the assessee has filed appeals before the appellate authority and filed the stay petition raising several contentions and when there is a statutory provision for filing a stay petition u/s 220(6) of the Act, the appellate authority is expected to consider the stay petition and pass a reasoned order after hearing the parties assessee has specifically sought for an opportunity of personal hearing - revenue is not justified in calling upon the petitioner to pay the demand for various assessment years thus, the order dated 31.3.2014 and 08.10.2014 set aside and the revenue is directed to consider stay petition u/s 220(6) Stay granted.

Summary

Issues:
1. Petition seeking writ of certiorarified mandamus to quash proceedings and prevent recovery of disputed demands.
2. Company as an Assessee under Income Tax Act, 1961.
3. Pending appeals against assessment orders for Assessment Years 2008-09 to 2012-13.
4. Stay petition filed under Section 220(6) of the Act.
5. Challenge against communication demanding payment while stay petition is pending.
6. Inquiry into the status of the stay petition.
7. Expectation for reasoned order on the stay petition by the appellate authority.
8. Quashing of impugned orders and direction to consider the stay petition.

The judgment concerns a petition requesting the issuance of a writ of certiorarified mandamus to annul the first respondent's proceedings and restrain them from recovering disputed demands related to assessment orders for Assessment Years 2008-09 to 2012-13. The petitioner, a company governed by the Indian Companies Act,1956, filed appeals against these orders, which are still pending. Subsequently, a stay petition was submitted under Section 220(6) of the Income Tax Act, 1961, citing various grounds for granting a stay and emphasizing the need for a personal hearing. However, during the pendency of the stay petition, the petitioner was instructed to pay an outstanding amount by a specified date, leading to a challenge of this communication in court.

Following directions to ascertain the status of the stay petition, it was confirmed that the petition was still pending, awaiting a decision from the authority. The court emphasized that the appellate authority should assess the stay petition thoroughly, considering all contentions and providing a reasoned order after a personal hearing, as requested by the petitioner. As the respondents assured that a decision would be made on the stay petition, the court allowed the writ petition, annulling the impugned orders and instructing the respondents to evaluate the petitioner's stay petition, granting a personal hearing and issuing a reasoned decision in accordance with the law. The judgment concluded without imposing any costs, closing the related miscellaneous petition.