CIT(Appeals) has inherent powers to grant stay on disputed income tax demands

0 comments Monday, January 23, 2012

 Rajsthan High Court has held in an important case namely Maheshwari Agro Industries Vs. Union of India that CIT(Appeals) has inherent powers to grant stay of disputed income tax demand. It is notable that under the Income Tax Act, CIT(A) has no express power to grant stay from the disputed demand.

The HC held: “The powers of the appellate authorities are indisputably concurrent and co-extensive with that of the Assessing Authority but wider and superior in nature. Section 251 of the Act clearly stipulates that in disposing of an appeal, the CIT (Appeals) can confirm, reduce, enhance or annul the assessment. Section 251(1)(c) of the Act further provides that in other cases, he may pass such orders in appeal as he thinks fit.
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