Jayanthi Seeman v. CIT (2020) 421 ITR 320 (Mad.)(HC)

S. 220 : Collection and recovery-Assessee deemed in default- Stay-Existence of prima facie case, financial stringency and balance of convenience-Duty of PCIT and responsibility of assesse-Status quo to be maintained till disposal of stay petitions by PCIT. [S. 220(3), 220(6), Art.226]

On writ the Court held that the orders passed by the PCIT rejecting the stay petitions were passed mechanically and without application of mind. The stay petitions filed by the assessee were equally mechanical and relied upon the circulars issued without reference to the existence of the three aspects of a prima facie case, financial stringency and balance of convenience. The assessee was to appear with the stay petitions covering the three aspects before the PCIT who would pass appropriate orders after hearing the assessee. Till the disposal of the stay petitions, status quo, was to be maintained with regard to the recovery. (AY.2010-11 to 2013-14) (SJ)