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Issues:
Stay application for recovery of demand, Extension of stay order, Communication of Tribunal's orders to Revenue authorities, Realization of demand during stay period, Refund of amount recovered, Direction for payment of demand. Analysis: 1. Stay Application for Recovery of Demand: The assessee filed a stay application seeking the stay of recovery of demand amounting to Rs. 4,43,57,861. The original stay petition was decided by the Tribunal on 16th June, 2004, granting absolute stay of the demand. However, the stay ceased to be effective after the expiry of 13th June, 2004, as per the provisions of the Act. 2. Extension of Stay Order: The Tribunal, upon hearing the parties, extended the stay of demand till 28th Dec, 2004. The Tribunal directed the Departmental Representative to maintain the status quo in respect of the stay granted by the Tribunal until the specified date. The Tribunal's oral orders were communicated to the Revenue authorities and the assessee's legal counsel. 3. Communication of Tribunal's Orders to Revenue Authorities: Despite the communication of Tribunal's oral orders to maintain the status quo, the Asstt. CIT proceeded with the recovery and obtained a banker's cheque for the demand amount. The State Bank requested to return the cheque to comply with the Tribunal's order. The Tribunal expressed displeasure about the recovery proceedings initiated by the Revenue during the stay period. 4. Realization of Demand During Stay Period: The Tribunal observed that the Asstt. CIT was within his powers to ask for remittance of the demand amount. However, the Asstt. CIT should have refrained from realizing the proceeds of the cheque in light of the Tribunal's binding order to maintain the status quo until the specified date. 5. Refund of Amount Recovered: The Tribunal directed the Asstt. CIT to refund the entire amount recovered if the proceeds of the cheque were realized after the communication of Tribunal's order. The assessee was directed to deposit 50% of the demand within three days of the refund. If the proceeds were realized before the communication, there would be no refund, and the attached assets would be released. 6. Direction for Payment of Demand: The Tribunal disposed of the stay application by extending the stay till the decision of the appeal or for 180 days from the date of the order, whichever expires earlier. The Asstt. CIT was directed to refund the amount recovered if realized after the communication of the Tribunal's order. This detailed analysis covers the key issues and the Tribunal's decision regarding the stay application, extension of stay order, communication of orders, realization of demand, refund of amount, and directions for payment of the demand.
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