| Case ID |
136baa1f-f30c-462c-8254-7bec50e8de4c |
| Body |
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| Case Number |
Civil Miscellaneous Writ Petition No. 1103 of 1994 |
| Decision Date |
Jan 05, 1995 |
| Hearing Date |
|
| Decision |
The Allahabad High Court ruled that the Income Tax Appellate Tribunal has the implied power to stay recovery proceedings during the pendency of an appeal, but it cannot be exercised routinely. The Tribunal's rejection of the stay application was found to be unjustified as it did not properly consider whether the conditions for granting a stay had been met. The Court emphasized that the Tribunal must evaluate each case on its merits and maintain proper judicial principles. The petitioner was given the opportunity to file a second stay application, which the Tribunal must consider afresh without the influence of executive policies. |
| Summary |
In the case of SHIV SHAKTI RUBBER AND CHEMICALS WORKS vs. Income Tax APPELLATE TRIBUNAL, the Allahabad High Court addressed the issue of the Tribunal's authority to grant stay orders regarding recovery proceedings under the Income Tax Act, 1961. The decision underscored that while the Tribunal has implied power to stay such proceedings, it must do so based on solid judicial principles rather than as a matter of course. The Court noted that the Tribunal had failed to adequately justify its rejection of the stay application, which was deemed contrary to established judicial canons. The High Court directed the Tribunal to reassess the stay application considering the merits of the case, thus ensuring fairness and preventing injustice to the litigants. This case highlights the balance between judicial discretion and the rights of taxpayers, emphasizing the importance of a judicious approach in tax-related matters. Keywords: Income Tax Act, Tribunal stay application, judicial principles, recovery proceedings, Allahabad High Court. |
| Court |
Allahabad High Court
|
| Entities Involved |
Not available
|
| Judges |
K.L. Sharma, J
|
| Lawyers |
Sri G.D. Srivastava,
Sri Ashok Kumar
|
| Petitioners |
SHIV SHAKTI RUBBER AND CHEMICALS WORKS
|
| Respondents |
Income Tax APPELLATE TRIBUNAL and others
|
| Citations |
1996 SLD 238,
1996 PTD 1196,
(1995) 213 ITR 299
|
| Other Citations |
I.T.O. v. M.K. Muhammad Kunhi (1969) 71 ITR 815 (SC)
|
| Laws Involved |
Income Tax Act, 1961
|
| Sections |
254,
271(1)(c)
|