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Issues:
1. Proper consideration of application for stay of recovery of disputed tax by Commissioner of Income-tax. 2. Legitimacy of the order of the Commissioner in treating the petition as a grievance petition. 3. Jurisdiction of the Tribunal to review administrative actions and ensure principles of natural justice are followed. 4. Prima facie correctness of the claim made by the assessee regarding constraints in payment of disputed tax. 5. Impact of bank account attachment on the conduct of business and the need for interim stay of tax recovery. Analysis: 1. The Tribunal emphasized the importance of the Commissioner of Income-tax properly considering applications for stay of recovery of disputed tax to protect the revenue's interest. It was noted that the Commissioner's rejection without reason was untenable, and the Tribunal directed the assessee to reapply to the Commissioner for a proper consideration, citing the need for a speaking order as per legal precedents. 2. The assessee sought a modification of the order to operate bank accounts, which were still attached despite the Tribunal's direction that the assessee not be treated as a defaulter until the Commissioner's decision. The subsequent order of the Commissioner treating the petition as a grievance petition was deemed arbitrary and an abuse of power, violating the doctrine of legitimate expectation as per the Supreme Court's ruling. 3. The Tribunal, citing legal precedent, asserted its jurisdiction to review administrative actions in considering applications for stay of tax recovery. It found the Commissioner's order to be vitiated by a failure to follow natural justice principles and a wilful refusal to carry out duties, leading to a prima facie acceptance of the assessee's claim regarding payment constraints. 4. Considering the impact of bank account attachment on the assessee's business operations, especially in a labor-oriented business, the Tribunal granted interim stay of tax recovery. It directed the Assessing Officer to revoke the attachment, allowing the assessee to pay a specified amount monthly, and ensured the revenue's protection by issuing necessary notices under the Income-tax Act. 5. The Tribunal recognized the prima facie case of the assessee in the appeal, acknowledging the necessity of funds to pay staff salaries and the potential hindrance caused by the bank account attachment. The decision to grant interim stay and allow partial payment aimed to balance the revenue's interests with the assessee's business needs, ensuring a fair resolution pending the appeal hearing scheduled for the following year.
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