Vacation of stay orders in light of S.C. judgement. - Income Tax - 1734/CBDT

INSTRUCTION NO. 1734/CBDT Dated: November 13, 1986 Please refer to Board's Instruction No. 1595 dated 10-1-1985 regarding follow up action on stay orders of High Courts. In the case of CIT Vs. Bansidhar Sons reported in 157 ITR 665, the Supreme Court has since held that the High Court and the Supreme Court do not have power to grant stay of recovery in income-tax cases as their jurisdiction in those cases is only advisory. In the case of Asst. Collector of Central Excise Vs. Dunlop (India) Ltd, reported in 154 ITR 172 the Supreme Court has observed that the balance of conscience in fiscal matters is in favour of the Government of India and the interim orders ought not to be granted merely because a prima facie case has been shown. These judgements of the Supreme Court strengthen our case for seeking vacation of stay orders. The need is to take immediate and effective steps for getting the stay orders vacated for early realisation of revenue involved in those cases. To being with a list of cases in your charge where recovery of outstanding demand exceeding Rs. 1 lakh has been stayed by court be prepared for this action. Please send to me by 30th of November, 1986 this alongwith the action taken in each of the case.