9911796707
TMI Blog2013 (3) TMI 513X X X X Extracts X X X X X X X X Extracts X X X X ..... s a matter of course, in view of the special nature of Taxation and Revenue laws. Only when a strong prima-facie case is made out and when there is balance of convenience, the Tribunal/appellate authority will consider whether or not to grant stay of the recovery proceedings and the stay will be granted only in deserving and appropriate cases, where the Tribunal/appellate authority is satisfied that the entire purpose of the appeal will be frustrated or rendered nugatory by allowing the recovery proceedings to continue during the pendency of the appeal before it. In the present case, it is informed by the learned counsel appearing for the parties that the recovery proceedings would be initiated, as impugned notice of demand is issued and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... leted by the Income Tax Department. The petitioner-Company is engaged in the manufacture and export of coffee, pots, jugs and kitchen/household items made of stainless steel. The petitioner set up a 100% export oriented unit under the EXIM Policy in force by obtaining necessary permission from the Development Commissioner, MEPZ-SEZ, Chennai on 20.5.2004. The Unit was fully functional from 1.6.2004 onwards after completion of construction, necessary customs bonding and installation and commissioning of machinery. The Unit was entitled to relief under Section 10-B of the I.T. Act that provided for a deduction of 100% of the profits earned from the activity of manufacture and export. (b) The petitioner filed Return in respect of the assessme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt for issuing a direction to the second respondent to dispose of the stay petition and in the meantime, he prayed this Court for staying the recovery proceedings. 4. On the other hand, learned SCGSC appearing for the respondents submitted that instead of filing appeal before the second respondent, the petitioner-assessee should have filed the appeal before the concerned administrative Commissioner of Income Tax and hence, it is not permissible for the second respondent to dispose of the appeal and only by the order of this Court, the second respondent-appellate authority could take up the stay petition. 5. It is the cardinal principle that the power of stay is not ordinarily to be exercised in a routine way or as a matter of course, in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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