Case Law Details
Kallakuri Dhana Lakshmi Katyayan Vs ITO (Telangana High Court)
By order dated 16.12.2021, respondent No.1 has taken the view that stay can be granted subject to payment of 20% of the outstanding demand within a week. While arriving at the above, respondent No.1 placed reliance on Circular dated 31.07.2017, issued by the Central Board of Direct Taxes.
On going through the impugned order of respondent No.1 dated 16.12.2021, we are of the view that the said order is devoid of reasons. Petitioner was required to be heard, and there should be due application of mind before a decision is taken on the prayer for stay. Impugned order dated 16.12.2021 does not indicate or disclose any application of mind on the part of respondent No.1 in considering the prayer of the petitioner.
It is well settled that recording of reasons is essential while dealing with such prayers made by an assessee.
In view of above, we set aside the order dated 16.12.2021 and remand the matter back to respondent No.1 for taking a fresh decision within a period of thirty (30) days from the date of receipt of a copy of this order in accordance with law by affording an opportunity of hearing to the petitioner.
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