Stay of demand considers ‘trinity’ of prima facie case, financial stringency & balance of convenience

Mrs. Kannammal Vs ITO (Madras High Court) Conclusion: The parameters to be taken into account in considering the grant of stay of disputed demandare well settled – the existence of a prima facie case, financial stringency and the balance of ‘Financial stringency’ would include within its ambit the question of ‘irreparable injury’ and ‘undue hardship’ as well. Notwithstanding that  assessee might not have specifically invoked the three parameters for the grant of stay, it was incumbent upon AO to examine the existence of a prima facie case as well as call upon assessee to...