Stay against proceedings. - Income Tax - 1247/CBDT

INSTRUCTION NO. 1247/CBDT Dated : April 9, 1979 Recently the Board considered a case where the Bombay High Court in a writ filed by an assessee against the prosecution launched by the Department under section 277 of the Income-tax Act granted a stay against such proceedings a few years back and the said stay order has still remained operative without any effort being made by the Department to get it vacated. It is felt that efforts are not being made by the Commissioners to have stay orders against the Department vacated as quickly as possible and to pursue the substantive action thereafter. It, therefore, calls for a review of all stay orders that have been obtained against the Department in order to measure the magnitude of the problem. 2. In this context the attention of the Commissioners is drawn to the previous instructions of the Board dated 14.10.1968, 26.2.1969 and 7.6.1974 (Printed before for ready references) emphasising the efforts to be made on their part in getting ex-parte stay orders vacated and also for expeditious disposal of writ petitions involving tax matters. Vide instruction No.1069, dated 28.6.1977 the Board clarified the effect of constitutional amendments by the Constitution (Forty Second Amendment) Act, 1976 in consultation with the Ministry of Law. The Commissioners of Income-tax had been requested in the last para of the said Instruction to identify all cases of interim orders in force as on 1.2.1977 as would cease to have effect on the expiry of the periods mentioned in clauses (a) and (b) of sub-section (3) of section 58 In order to know the result of such exercise, information may be furnished as per Part-I of the attached proforma. 3. As for other orders staying assessment, collections etc., in force as on 1.4.1979 for more than one year, the Commissioners may report to the Board as per Part-II of the proforma. 4. It is felt that the Rules of the High Courts might have been amended in view of the Constitutional Amendment Act. The Commissioners may send the extract from the Rules of the concerned High Courts dealing with the procedure for hearing the opposite party before the stay is granted. 5. Information aforesaid should be sent to the Board on or before 30th April, 1979.