S. 254(2A) : Appellate Tribunal-Stay-ITAT has power to grant stay only if the asseessee pays 20 % of the tax in dispute or furnishes equal amount of security of like amount. [S. 220(6), 253, 254(1)]
The Assessee filed a stay application before ITAT against demand raised Assessee submitted that most issues were covered and hence blanket stay be granted. It argued that ITAT has powers to grant stay and submitted that new amendment of asking assessee to pay 20% of demand is not applicable as it runs down the power of ITAT. Honourable ITAT held that;

1. When the Hnourable Supreme court held that ITAT has powers to grant stay it also held that these powers cannot be used in a routine manner However these observations apply to when there was no provision in the statute

2. Under the new proviso to sec 254(2A) it categorically states that the ITAT shall pass an order of stay on condition that assessee deposits not less than 20% of demand raised or furnishes security of equal amount

3 Thus the inference drawn by SC prior to amendment is different than the power now provided by the statute

4. Once statute holds that ITAT can grant stay only on deposit of not less than 20% of demand, it is not open to the ITAT to grant stay in violation of such statutory provisions

5. ITAT has been a creature of statute and cannot challenge the reasonableness of this provision which can be done only by the superior court

6. Granting stay without payment would make the provision redundant and otiose

7. No matter how fair just or desirable the case maybe, but still
ITAT cannot grant stay without collecting 20% of demand or security of like amount This is reality and the Assessee has to accept it.

Held Assessee to provide security of like amount as most issues were covered (SA No. 116/M/2022, in ITA No. 2125/Mum/2022 dt 26-9-2022 ) (AY. 2018-19)
Hindustan Lever Ltd. v. Dy. CIT (Mum.)(Trib.) www.itatonline.org
[Coram : Hon’ble Shri Pramod Kumar (Vice President), and Hon’ble Smt. Kavitha Rajagopal (Judicial Member)]