January 2023
Once a statutory provision provides explicitly that the Tribunal can only grant a stay subject to a deposit of not less than 20 per cent of the disputed demand, or furnishing of security thereof, it is not open to the Tribunal to grant a stay in violation of these basic statutory provisions.
Law itself visualizes that the payment of 20 per cent of the disputed demands, impugned in the appeal before the Tribunal, cannot be viewed as a condition precedent for grant of stay by the Tribunal, in as much as when the applicant “furnishes security of equal amount in respect thereof”, the Tribunal can exercise its powers of granting a stay.
By Jagdish Punjabi, Chartered Accountant
Devendra Jain, Advocate
Reading Time 5 mins
47. Hindustan Lever Ltd. vs. DCIT
SA No. 116/Mum/2022 in ITA 2125/Mum./2022
(Mumbai-Trib.)
A.Y.: 2018-19
Date of order: 26th September, 2022
Section: 254(2A)
Once a statutory provision provides explicitly that the Tribunal can only grant a stay subject to a deposit of not less than 20 per cent of the disputed demand, or furnishing of security thereof, it is not open to the Tribunal to grant a stay in violation of these basic statutory provisions.Law itself visualizes that the payment of 20 per cent of the disputed demands, impugned in the appeal before the Tribunal, cannot be viewed as a condition precedent for grant of stay by the Tribunal, in as much as when the applicant “furnishes security of equal amount in respect thereof”, the Tribunal can exercise its powers of granting a stay.
FACTSBy this stay application, the assessee sought a stay on the collection/recovery of the income-tax and interest demands aggregating to Rs. 172.47 crore raised by the AO in framing an assessment u/s 143(3) r.w.s. 144C(13) of the Act for the A.Y. 2018-19, which order has been impugned in an appeal before the Tribunal and out of which the assessee made not even a partial payment.
HELDThe Tribunal, after considering the decision of the Supreme Court in
I.T.O. vs. M. K. Mohd. Kunhi [(1969) 71 ITR 815 (SC)], and the provisions of section 254(2A) as also the principle of harmonio
