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Issues: Stay of demand pending against assessee.
Analysis: 1. The assessee, a petty agriculturist, filed a stay application seeking to stay the demand pending against them. The assessee's representative highlighted that various reference applications were pending before the High Court, including appeals and revision petitions related to the ownership of confiscated gold, which formed the basis of additions in the assessee's hands. The representative argued that since the matter was sub judice before the High Court, the demand should be stayed until the disposal of the reference application. Additionally, it was emphasized that the Tribunal had the authority to grant the stay, citing relevant case laws to support the argument. 2. The Departmental Representative objected to the stay of demand, stating that the assessee did not deny ownership of the seized gold, and therefore, the Assessing Officer's orders were correct, and the demand should not be stayed. 3. After considering the arguments from both sides, the Tribunal found that it was a fit case for the stay of demand. The Tribunal noted that the assessee solely relied on agricultural income, had no other sources of income, and that various appeals and reference applications were pending before the High Court regarding the ownership of the confiscated gold. Referring to relevant Supreme Court judgments, the Tribunal held that the power for the stay of demand rested with the Tribunal. The Tribunal also acknowledged that the assessed income was significantly higher than the income earned by the assessee, primarily from agricultural activities. In line with the legal precedents and observations, the Tribunal granted the stay of recovery of demand until the disposal of the reference application before the High Court. The Tribunal directed the assessee not to dispose of any assets and to furnish an undertaking to that effect before the Assessing Officer. 4. Consequently, the Tribunal allowed the stay application, ensuring that the recovery of the demand was stayed until the High Court's reference application was resolved, with specific directives for the assessee to comply with during this period.
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