The Kerala High Court directed the Income Tax Commissioner to consider the stay application based on a memorandum of the Central Board of Direct Taxes (CBDT).
Puliyammakkal Mathai Sebastian, the petitioner challenged the order dated 27.06.2023 and directed the 1st respondent to reconsider the stay application. The petitioner submitted that an appeal against the assessment order is pending before the appellate authority, i.e., 3rd / 4th respondent. The petitioner is granted one week time to file a stay application before the appellate authority concerned.
Justice Dinesh Kumar Singh directed the appellate authority to consider the said application on its merit after taking into consideration Office Memorandums issued by CBDT as well as the Judgment of the Supreme Court in the case of Principal Commissioner of Income Tax Vs.LG Electronics India Private Limited (2018)
In this case, it has been observed as under; “2. Having heard Shri. Vikramjit Banerjee, learned ASG appearing on behalf of the appellant, and giving credence to the fact that he has argued before us that the administrative circular will not operate as a fetter on the Commissioner since it is a quasi-judicial authority, we only need to clarify that in all cases like the present, it will be open to the authorities, on the facts of individual cases, to grant deposit orders of a lesser amount than 20%, pending appeal.”
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