Stay applications not meaningless formalities - High Court
IN a recent judgement, the Bombay High Court observed,
"Applications for stay cannot be treated by the assessing officers or for that matter by appellate authorities as meaningless formalities. Quasi-judicial authorities have to apply their mind in an objective and dispassionate manner to the merits of each application for stay. While the interest of the Revenue has to be protected, it is necessary for assessing officers to realize that fairness to the assessee is an intrinsic element of the quasi-judicial function conferred upon them by law.
Applications for stay must be disposed of at an early date. Such applications cannot be kept pending to obviate compliance with the need to evaluate the contentions of the assessee until after monies are recovered using the coercive arm of the law. Appellate authorities must set down time schedules for disposal of stay applications with reasonable expedition. The manner in which recourse has been made to the coercive process of law, leaves much to be desired and we are of the view that the action which was pursued was completely high handed and arbitrary."
Though this was in relation to an Income Tax case, it should apply to all taxes. Remember just one Circular from the CBEC in the New Year drove thousands of assessees to various High Courts. Hopefully the crazy recovery menace will come to an end in another ten days.