Allowing the petition the Court held that discretion to grant the stay must be exercised judiciously. Rejection of application for stay of recovery of penalty is held to be without application of mind. Since the AO had started making recovery without giving any time till the application for review filed by the assessee before the PCIT could be heard, the conduct in not waiting for even three days in terms of the order passed by him and making coercive recovery, had created a situation which had compelled the assessee to approach the court for relief. Considering the totality of the facts as emerging from the record, the petition under article 226 of the Constitution of India was maintainable. The assessee was entitled to stay of recovery of the penalty. (AY. 2012-13)