|The Tax Publishers2021 TaxPub(DT) 0860 (Mad-HC)
INCOME TAX ACT 1961
Where the exercise of power by Tribunal was not to be in accordance with section 254(2A) by extending the stay beyond a period of 185 days, when the delay in disposing of the appeal is attributable to the assessee, the substantial questions of law was answered in favour of the Revenue and against the assessee.
Appeal (Tribunal) - Stay of demand - Extending stay beyond a period of 185 days -
Revenue filed appeal against the order of Tribunal extending the stay beyond a period of 185 days, when the delay in disposing of the appeal is attributable to the assessee, which is contrary to section 254(2A). Held: Court was at loss to understand as to how the Tribunal exercised its power in issuing a suo motu Corrigendum, that too by an undated order without hearing the Revenue or the AO. As mentioned, the appeal was not taken up for hearing and obviously, the protection granted by the Tribunal in its interim Order enured in favour of the assessee and the Revenue was right in its argument that the order of stay was in force beyond the period provided in the proviso to section 254(2A). Tribunal thus, has no such power to issue directions, but has got power to grant an interim order under section 254, subject to the conditions stipulated therein. Therefore, the substantial question of law was answered in favour of the Revenue and against the assessee.
FAVOUR : Against the assessee
A.Y. : 2015-16
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