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TMI Blog2012 (4) TMI 171X X X X Extracts X X X X X X X X Extracts X X X X ..... the total demand of Rs. 1.56 crores of which an amount of Rs.35 lacs was to be paid in the month of March and the balance in installments. By the second order, the Petitioners have been directed to pay an amount of Rs.30 lacs on or before 26 March 2012 while the balance was stayed until 31 July 2012 or until disposal of the appeal, whichever is earlier. 2 The First Petitioner is a public charitable trust registered under the Bombay Public Trusts Act, 1950 and is also registered under Sections 12A and 80G of the Income Tax Act, 1961. The First Petitioner conducts 10 educational institutions where over 12600 students are enrolled. It has employed 350 persons as members of the staff. It has been averred that there are about 2200 students who ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cer under Section 220(6). The application for stay of demand was heard on 8 February 2012 by the First Respondent. On 27 February 2012 the First Petitioner received a letter dated 10 February 2012 of the First Respondent, even before the application for stay could be disposed of, requiring the First Petitioner to pay the demand within three days, failing which coercive proceedings, it was stated, would be adopted. The Petitioner was called upon to produce evidence of payment of the demand of Rs.1.55 Crores. The First Petitioner filed an application on 29 February 2012 before the Director of Income Tax, the Second Respondent to these proceedings. On 14 March 2012 the First Petitioner received a copy of the order of the Second Respondent date ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat Assessing Officers and Appellate Authorities, when they dispose of applications for stay, act as quasi judicial authorities and not merely as tax gatherers of the Revenue. While they have a duty of protecting the interests of the Revenue, they need to mitigate the hardship to the Assessee and applications for stay must be considered objectively. In the present case the Assessee continues to have a registration under Section 12A, which has not been revoked. The Assessee has received the benefit of exemptions on the basis that it engages in a charitable purpose within the meaning of Section 2(15) until it has been denied the benefits for Assessment Year 200910. 6 Learned counsel appearing for the Revenue submits that under Section 11(1)( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee has highlighted the nature of its activities in several applications filed in support of the plea for stay and also explained its financial position. None of this has been taken into account while disposing of the application for stay.
9 Accordingly, we quash and set aside the impugned orders dated 9 March 2012 and 14 March 2012 and direct that pending the disposal of the appeal filed by the Assessee for Assessment Year 200910 before the Commissioner of Income Tax (Appeals), there shall be a stay of demand and no coercive steps shall be taken against the Assessee for the recovery of the demand in the amount of Rs.1.56 Crores.
10 The Petition is, accordingly, disposed of. There shall be no orders as to costs. X X X X Extracts X X X X X X X X Extracts X X X X
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