2019 (12) TMI 1535 - HC - Income Tax

Stay of demand - petitioner has challenged an order passed by the Income Tax Appellate Tribunal, Mumbai imposing a condition of depositing further sum of ₹ 25 crore in two equal instalments to enable the petitioner to enjoy stay against further recoveries in relation to the petitioner s appeal before the Tribunal concerning the assessment year 2011-12 - HELD THAT - Till date the respondents have not fled any reply. The Writ Petition is admitted. The respondents waive service. Income-tax Appellate Tribunal, Mumbai shall not insist on the petitioner depositing the amount as directed by its order dated 4th September, 2019. This order is passed without prejudice to the rights and contentions of the parties. The Income-tax Appellate Tribunal, Mumbai is not precluded from proceeding further with the hearing of the appeal on the date fixed or any date thereafter.

Summary

Issues involved:
Challenge to order of Income Tax Appellate Tribunal imposing deposit condition for stay against recoveries in appeal concerning assessment year 2011-12.

Analysis:
The High Court of Bombay reviewed the order passed by the Court on 25th September, 2019, where the petitioner challenged the Income Tax Appellate Tribunal's order of 4th September, 2019, requiring a deposit of ?25 crore in two instalments for stay against further recoveries in relation to the appeal for the assessment year 2011-12. The Court noted that the Tribunal and the revenue did not insist on the petitioner depositing the amount. Consequently, the High Court directed that the Tribunal should not enforce the deposit condition, ensuring the appeal's hearing proceeds without prejudice to the parties' rights. The Court admitted the Writ Petition, and the respondents were given a waiver of service.

The High Court's order specified that the Income-tax Appellate Tribunal in Mumbai should not compel the petitioner to deposit the amount as per the Tribunal's order from 4th September, 2019. This directive was issued to safeguard the rights and contentions of all parties involved. Additionally, the order clarified that the Tribunal was not restricted from continuing with the appeal's hearing on the scheduled date or any subsequent date.

The Court scheduled the Writ Petition for a final hearing and disposal on 3rd February, 2020, indicating a clear timeline for further proceedings in the case. This step ensures a structured approach to resolving the matter and moving towards a conclusive decision in a timely manner.