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Issues:
1. Stay on collection/recovery of income-tax demand under s. 80HHC for the asst. yr. 1993-94. 2. Validity of chartered accountant's certificate on 'Form No. 10CCAC' for deduction under s. 80HHC. 3. Recomputation of allowable deduction under s. 80HHC by the AO. 4. Prima facie case in appeal for deduction under s. 80HHC. 5. Financial stringency and mala fides for grant of stay. 6. Merits of computation of deduction under s. 80HHC by the AO. 7. Grant of stay on disputed demands. Analysis: 1. The assessee filed stay petitions seeking stay on the collection/recovery of income-tax demand for the asst. yr. 1993-94 under s. 80HHC. The demands were created due to the AO's recomputation of allowable deduction under s. 80HHC, leading to an appeal before the Tribunal against the CIT(A)'s decision to decline the claim for deduction based on a technical ground related to the chartered accountant's certificate. 2. The issue of the validity of the chartered accountant's certificate on 'Form No. 10CCAC' was raised, with the CIT(A) rejecting the claim for deduction under s. 80HHC due to a perceived invalidity of the certificate. The assessee argued that the rejection was based on a hyper-technical view and not in line with judicial precedents, emphasizing the errors in the computation of deduction under s. 80HHC. 3. The assessee contested the AO's recomputation of allowable deduction under s. 80HHC, highlighting errors in the computation that led to a lower allowable deduction amount compared to what was claimed. The Tribunal found that the assessee had a strong prima facie case in appeal regarding the erroneous recomputation by the AO. 4. The Tribunal acknowledged the strong prima facie case made by the assessee in the appeal for deduction under s. 80HHC, directing an out-of-turn hearing and granting a stay on the collection/recovery of the disputed demands pending the appeal's disposal. 5. The issue of financial stringency and mala fides for the grant of stay was raised by the Departmental Representative, who opposed the stay applications. However, the Tribunal considered relevant factors and decided to grant the stay based on the assessee's prima facie case and other considerations, despite the objections raised. 6. The merits of the computation of deduction under s. 80HHC by the AO were discussed, with the Departmental Representative arguing against the grant of stay based on prior judicial scrutiny. The Tribunal, however, found that a strong prima facie case was established by the assessee, justifying the grant of stay on the disputed demands. 7. Ultimately, the Tribunal allowed the stay petitions, directing that no coercive measures be taken for the collection/recovery of the disputed demands until the appeal's disposal or further orders by the Tribunal. The decision was based on a careful consideration of the relevant factors and legal principles governing the grant of stay in such cases.
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