Recovery proceedings Initiation before stay application disposal is illegal

 Brief of the case:

• The Hon’ble Bombay High Court in the case of Khandelwal Laboratories Pvt. Ltd. DCIT while disposing of writ petition held that the any action of revenue  to recover taxes adopting coercive means is not permissible till the assessee’s  application for stay under section 220(6) of the Act is disposed of.
• Further, an application for stay should be disposed off by a speaking order. Merely ordering assessee to pay demand within certain period of time doesn’t free AO from his responsibility to dispose off stay application.

Please become a Premium member. If you are already a Premium member, login here to access the full content.