RAJYA VOKKALIGARA SANGHA Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) The petitioner has sought for issuance of writ in the nature of mandamus or passing of appropriate direction to modify the order granting stay at Annexure-A whereby the Authority in its order dtd. 23/4/2019, while considering the request for grant of stay, has directed the assessee to pay an amount of 20% of the demand and accordingly, has granted a conditional order of stay of the demand.

(2.) Learned counsel for the petitioner would submit that the order at Annexure-A passed on the application for stay is a cryptic order with no application of mind. It is submitted that in terms of the detailed request made out in the reply at Annexure-F, the Authority ought to have applied its mind and exercised discretion appropriately. It is submitted that the very contention raised has been decided in favour of the assessee in certain proceedings with respect to the assessment year 2016-17 in light of exemptions under Ss. 11 and 12 of the Income Tax Act. 1961 (hereinafter referred to as 'the Act' for brevity). It is submitted that there is no notice prior to denying exemption under Ss. 11 and 12 of the Act which though uploaded in the portal was not intimated to the assessee.

(3.) It is further submitted that while considering grant of stay, financial hardship was required to be considered and there is no application of mind while passing impugned order. It is pointed that details have been setout in their application regarding prima-facie case in their favour. It is submitted that the appeal is pending since January-2019 and at this stage, the question of passing order directing Authority to reconsider and pass fresh orders on application of stay would be futile exercise and in fact, Authority must be directed to dispose of the appeal expeditiously and in the light of the merits as made out in the application for stay, there may be direction to the Authority not to take any precipitative steps till conclusion of the appeal.