2019 (10) TMI 1266 - HC - Income Tax

Stay of demand - authority granted a stay of the recovery of the confirmed demand on condition that the petitioner pays 20% of the amounts confirmed against him by the assessment orders - case of the petitioner that inasmuch as this Court has, in identical matters, directed the Appellate Authority to consider the appeals, on merits, by directing that recovery steps for recovery of amounts confirmed against the assessee by the assessment orders shall be kept in abeyance during the pendency of the appeals, a similar order should be passed in his case also - HELD THAT - Taking note of the directions of this Court in connected matters, the writ petition is disposed by directing the 2nd respondent to consider and pass orders on Exts.P3 and P7 appeals within an outer time limit of six months from the date of receipt of a copy of this judgment, after hearing the petitioner. It is made clear that recovery steps for recovery of amounts confirmed against the petitioner by Exts.P1 and P5 assessment orders shall be kept in abeyance till such time as orders are passed by the 2nd respondent, as directed and the order communicated to the petitioner. The petitioner shall produce a copy of the writ petition together with a copy of this judgment, before the 2nd respondent, for further action.

Summary

Issues:
1. Stay of recovery of confirmed demand pending appeal under Section 220(6) of the Income Tax Act.
2. Direction to consider and pass orders on appeals within a specified time limit.

Analysis:

Issue 1: Stay of recovery of confirmed demand pending appeal under Section 220(6) of the Income Tax Act
The petitioner filed appeals against assessment orders for the years 2008-09 and 2016-17, along with stay petitions before the 2nd respondent. The authority under Section 220(6) of the Income Tax Act granted a stay of recovery of the confirmed demand on the condition of paying 20% of the amounts confirmed against the petitioner. The petitioner sought a similar stay as directed by the Court in identical matters. The Court considered the petitioner's case and directed the 2nd respondent to consider and pass orders on the appeals within six months. The recovery steps for the confirmed amounts were ordered to be kept in abeyance until the 2nd respondent's decision is communicated to the petitioner.

Issue 2: Direction to consider and pass orders on appeals within a specified time limit
The Court disposed of the writ petition by instructing the 2nd respondent to decide on the pending appeals within six months from the date of the judgment. This direction was given after hearing both parties and considering the precedents in similar matters. The petitioner was required to provide a copy of the writ petition and the judgment to the 2nd respondent for further action. The order emphasized that recovery actions for the amounts confirmed in the assessment orders should be halted until the 2nd respondent's decision is communicated to the petitioner.

This judgment illustrates the Court's approach towards granting stays on recovery of confirmed demands pending appeals under the Income Tax Act, emphasizing the need for timely consideration of appeals and setting a specific time limit for such decisions.