Allowing the petition the Court held that ; earlier stay granted and extended from time to time on the basis of a binding Central Board of Direct Taxes’ circular which directs officers of the Revenue to grant stay till the disposal of the first appeal on payment of 15 per cent. disputed amount. This circular was completely ignored. Merely having funds, i.e., no financial hardship, would not by itself justify the deposit where a prima facie case was made out. Nowhere had the delay in disposal of the pending appeals before the appellate authority been attributed to the assessee. The petition was adjourned and ad interim stay was granted restraining the authorities from taking any coercive steps to recover the amount of Rs. 43.79 crores or any part thereof being the outstanding demand in respect of the pending appeals before the Commissioner (Appeals) till the next date. On facts the assessee has paid 38% of demand ( AY. 2000-01 to 2012-2013)
Vodafone India Ltd. v. CIT (2018) 400 ITR 516/164 DTR 261 / 305 CTR 609 (Bom) (HC)
S. 226 : Collection and recovery – Stay of proceedings – Deduction at source – Appeal pending before CIT(A)- Refusal to extend stay merely because the assessee had funds was held to be not proper , when the Board has given instructions that stay must be granted on paying 15% of tax in dispute when appeal is pending before CIT( A) .Assessee has paid 38% of demand [ S. 225 ]