Covenant Stones (P.) Ltd. v. CIT (Appeals) (2024) 301 Taxman 554 (SC) Editorial: Covenant Stones (P.) Ltd. v. CIT (Appeals) (2024)167 taxmann.com 639 (Ker)(HC)

S. 220 : Collection and recovery-Assessee deemed in default –Stay of recovery-SLP of assessee is disposed of by reserving liberty to assessee to file a review petition before Division Bench of High Court and till initial consideration of review petition for any interim or final order, there would be stay of directions. [Art. 136]

Assessee challenged a conditional stay order issued by Appellate Authority, which required payment of 20% of total tax demand for assessment years 2014-2015 to 2019-2020 in seven installments. Single Judge dismissed writ petition, deeming stay order reasonable. Assessee filed  writ appeal, arguing that no reasons were provided for 20% payment requirement and that compliance would cause hardship due to financial difficulties. Court held that in as much as Appellate Authority had directed assessee to pay only 20% of total tax demand raised for various assessment years and had also granted installments to effect said payment of 20% of said tax amount, non-interference with said order by Single Judge did not appear to be unreasonable. However, considering assessee’s financial difficulties, court modified order to permit payment in seven monthly instalments starting from June 15, 2024. SLP of assessee is  disposed of by reserving liberty to assessee to file a review petition before Division Bench of High Court and till initial consideration of review petition for any interim or final order, there would be stay of directions.  (AY. 2014-15 to 2019-20)