Background-:
1. We all are aware that, for various reasons, CIT(A) is reluctant to give stay of demand then be it for collecting more revenue, instructions of CBDT, meeting the target etc.
2. The preponderant legal position in respect of challenging the disposal by CIT(A) of stay of demand is that the assessee has to approach his jurisdictional HC by way of a WRIT.
3. Practically speaking for small assessees, WRIT is a costly affair, both time and money consuming.
4. As compared to approaching HC, ITAT is much better an option.
5. The moot question being, whether one can approach ITAT in such a situation.
Takeaway-:
6. One precedence is there whereby a person aggrieved by the disposal of application for stay of demand can approach ITAT instead of writ to HC.
7. Delhi ITAT has, in the case of Employees’ Provident Fund Vs. Addl. CIT (T.D.S) dated 10.04.2015 has admitted the appeal and has granted a stay on such demand when quantum appeal is not pending before it.
8. I do not know whether other judicial forums will uphold it or not.
Facts in specific-:
9. The DCIT(TDS) passed an order dated on 31-March-2014 treating the assessee as assessee in default for non payment u/s 201 and section 201(1A)
10. Aggrieved by the order, an appeal was filed before CIT(A)
11. While the quantum appeal is still pending, an application for stay of demand was made by the assessee.
Judgement – First Appellate Authority – CIT(A)
12. The CIT(A) disposed off the stay application rejecting the stay and directing the AO to take action for recovery on 19-3-2015.
13. Aggrieved by such disposal, the assessee filed appeal before ITAT in form 36 on 20-3-2015.
Arguments – revenue
14. The appeal is not maintainable in terms of section 253. At this stage, I am restricting myself only to the question as to whether the appeal is maintainable.
Arguments – assessee
15. Assessee relied upon various case laws with a prayer to admit the appeal. At this stage, I am restricting myself only to the question as to whether the appeal is maintainable.
Moot questions-:
