2020 (2) TMI 591 - HC - Income Tax

Stay petition - HELD THAT - Principal Commissioner is not reviewing the stay petition, in spite of the application submitted by the petitioner, which was not accepted by him. It is also the case of the petitioner, as stated in paragraph-9 of the writ application, that his appeal is still pending before the Commissioner of Income Tax (Appeals), Jamshedpur, in view of the fact that the said post is lying vacant since February, 2019 itself, and due to non-availability of the Appellate Authority, the appeal could not be disposed of. We dispose of the writ application with the direction to the respondent No. 1, the Principal Commissioner of Income Tax, Jamshepdur, to review the stay petition of the petitioner, as it was stated in his earlier order dated 26th June, 2019, that the stay petition shall be reviewed in the 1st week of January, 2020, and to pass the appropriate order, in accordance with law. Till then, no coercive step shall be taken against the petitioner.

Summary

Issues:
1. Stay of demand by Principal Commissioner of Income Tax
2. Review of stay petition by Principal Commissioner
3. Delay in disposal of appeal due to vacant post of Appellate Authority

Analysis:
1. The petitioner challenged a demand of &8377; 69,47,560/- for the assessment year 2015-16 and appealed before the Appellate Authority. The Principal Commissioner stayed the demand till the appeal's disposal or 31st December 2019, whichever was earlier, instructing cooperation in the appeal's prosecution. The petitioner's grievance was the non-review of the stay petition by the Principal Commissioner despite submission by the petitioner.

2. The High Court directed the Principal Commissioner to review the petitioner's stay petition, as mandated in the earlier order, and to issue an appropriate order in accordance with the law. The court emphasized no coercive action should be taken against the petitioner until the review is completed. The writ application was disposed of with this directive.

3. The petitioner highlighted the delay in appeal disposal due to the vacant post of the Appellate Authority since February 2019. The non-availability of the Appellate Authority led to the pending status of the appeal before the Commissioner of Income Tax (Appeals), Jamshedpur. The court's ruling focused on ensuring the review of the stay petition and addressing the delay in the appeal process caused by the absence of the Appellate Authority.