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2015 (11) TMI 928 - HC - Income TaxGrant an order of stay refused - Held that - This court directs that the stay petition pending before the Commissioner of Income Tax (Appeals), the 3rd respondent herein, be taken and disposed of on merits and in accordance with law within a period of two weeks from the date of receipt of a copy of this order and until then there shall not be any recovery proceedings.
Issues:
Challenging the refusal to grant an order of stay by the 1st respondent. Analysis: The petitioner, a company engaged in the manufacture and distribution of Indian Made Foreign Liquor, filed returns of income regularly under the Income Tax Act. The petitioner entered into agreements with various entities for infrastructure provision for liquor manufacturing. The financials disclosed a significant amount related to the sale consideration of other brand liquor, passed on to companies after bottling and labelling services. The assessing authority raised queries regarding this sale consideration, leading to an order of assessment making additions/disallowances. The petitioner contended that the assessment order was cryptic, non-speaking, and contrary to the Income Tax Act. The petitioner challenged the refusal to grant an order of stay, seeking direction for the 3rd respondent to dispose of the stay petition within a timeframe. The court considered both parties' submissions and directed the stay petition pending before the Commissioner of Income Tax (Appeals) to be taken and disposed of on merits within two weeks. Until then, no recovery proceedings were to be initiated. The writ petition was disposed of with these directions, and no costs were imposed. This judgment addresses the challenge against the refusal to grant an order of stay, emphasizing the need for the stay petition to be decided promptly by the Commissioner of Income Tax (Appeals). The court's decision aims to ensure a fair and timely resolution of the matter, preventing any coercive recovery actions until the stay petition is adjudicated.
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