2018 (4) TMI 405 - HC - Income Tax

Order on stay under Section 220(6) - Held that - Stay under Section 220(6) of the Act is always subject to variation in case of change in facts and/or in law. In this case, the reliance by the Revenue on the order dated 21st June, 2017 for Assessment Year 2012-13, in the context of the hearing already being concluded for the subject Assessment Years is not justified. Moreover, the issue does not seem to be concluded. The very fact that the Commissioner of Income-Tax (Appeals) has heard the petitioners in respect of the appeals for the assessment years and has still not taken a final decision, would itself prima-facie indicate that the Commissioner of Income-Tax (Appeals) is considering whether or not to follow the order dated 21st June, 2017 passed in respect of the Assessment Year 2012-13 by him on which the Revenue places reliance for justifying the impugned order dated 16th March, 2018. Petition is allowed and the impugned order dated 16th March, 2018 of the Commissioner of Income-Tax is quashed and set aside

Summary

Issues:
Challenge to order reviewing stay of demands for multiple assessment years under Section 220(6) of the Income-Tax Act, 1961.

Analysis:

1. Issue: The petition challenges an order reviewing the stay of demands for Assessment Years 2009-10, 2010-11, 2011-12, and 2013-14 under Section 220(6) of the Income-Tax Act, 1961.

2. Analysis: The impugned order directed the petitioner to deposit 20% of the demand for each assessment year, threatening coercive action for non-compliance. However, there is no statutory requirement for pre-deposit for appeals before the Commissioner of Income-Tax (Appeals). The petitioner's appeals for the mentioned assessment years were already heard, and the decision was pending as of the judgment date.

3. Issue: Justification for the review of the stay order based on a decision for a different assessment year.

4. Analysis: The Revenue sought to review the stay order based on a decision for Assessment Year 2012-13, where the issue was decided in their favor. However, the court noted that the Commissioner of Income-Tax (Appeals) had not yet concluded the decision for the assessment years in question. The court emphasized that a stay order is subject to variation based on changes in facts or law, but in this case, the issue was not conclusively settled.

5. Issue: Jurisdiction of the Commissioner of Income-Tax to review the stay order.

6. Analysis: The court held that the Commissioner's decision to review the stay order was not justified, especially considering that the appeals for the assessment years had been heard, and no final decision was made. The court found that the Commissioner was still considering whether to follow the decision on a different assessment year that the Revenue relied upon to justify the review.

7. Outcome: The court allowed the petition, quashing and setting aside the impugned order dated 16th March, 2018, issued by the Commissioner of Income-Tax. No costs were awarded in the matter.