M/S. Mavany Brothers v. Commissioner Of Income Tax And Anr

IN THE HIGH COURT OF BOMBAY AT GOA CIVIL APPLICATION NO. 32 OF 2007INTAX APPEAL NO. 8 OF 2007 M/S. MAVANY BROTHERS Versus COMMISSIONER OF INCOME TAX AND ANR ... Applicant ... Respondents Mr. Sarangan, Senior Advocate with Mr. P. A. Kamat, Advocate for theapplicant. Mr. S. R. Rivankar, Advocate for the respondents. P.C. -Coram:S.A.BOBDE &N. A. BRITTO, JJ.-Date:26th March, 2007 Heard. Prima facie, there is no merit in the submission on behalfof the Department that Section 265 of the Income Tax Act, 1961 does notpermit this Court to grant a stay of the order in appeal. Section 265,reads as follows: "265. Notwithstanding that a reference has been made to the High Court or the Supreme Court or an appeal has been preferred to the Supreme Court, tax shall be payable in accordance with the assessment made in case." 2. It is clear from the provisions of Section 265 that the tax is notmade payable in accordance with the assessment where there is an appealto this Court. There is a well known distinction in law between areference and an appeal which need not be elaborated upon here. Merelybecause the tax is payable when a reference is made to this Court, it cannot be inferred that it is so payable even if an appeal is admitted bythis Court, particularly when not so provided for by Parliament. 3. Having regard to the basic question of liability of the appellant, we are of the view that it would be appropriate in the interest of justice, togrant an interim stay pending the appeal. S.A.BOBDE, J. ssm. N. A. BRITTO, J.