INCOME TAX ACT, 1961

Section 254

Appeal (Tribunal) - Stay of demand - Extension beyond 365 days -

Assessee submitted that the appeal had been fixed for hearing on 20-1-2020, when the earlier stay order was passed. Thereafter, the case was fixed on 18-3-2020 and 9-6-2020. On all the three occasions, the Revenue sought adjournment and hence the appeal had then been posted for hearing on 24-9-2020. Accordingly, he prayed that the stay granted earlier may kindly be extended. AO contended that the stay could not be extended by Tribunal beyond the period of one year. He submitted that the stay was originally granted to the assessee on 21-4-2017 and since then, the Tribunal had extended the stay several times. Accordingly, he held that assessee may be directed to pay further amount towards the outstanding demand. Held: It was stated that there was no change in the facts and circumstances of the case and further the delay in disposing of the appeal was not attributable to assessee, the stay already granted by the Tribunal deserved extension. Accordingly, the stay was extended for further period of 180 days commencing from the date of this order or till the date of disposal of the appeal, whichever period expires earlier. Assessee should not seek adjournment on the date of hearing without reasonable cause, failing which the present stay order should be subjected to review by the Division Bench hearing the appeal.

REFERRED : CIT v. Ecom Gill Coffee Trading (P) Ltd. (2014) 362 ITR 204 : 2012 TaxPub(DT) 2425 (Karn-HC)

FAVOUR : In assessee's favour.

A.Y. : 2012-13

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