2015 (9) TMI 1414 - AT - Income Tax

Extension of stay of demand - Held that - In the present case we find that Assessee has complied with the condition of payment of disputed tax demand as directed by the Co-ordinate Bench of Tribunal. We further find that the appeal of the Assessee has not yet been disposed of and the non disposal of appeal is not attributable to the Assessee. Considering the aforesaid facts we are of the view that in the present case the Assessee deserves extension of stay of demand. We therefore extend the stay of impugned tax demands subject to payment of 50, 000/- per month ( as stipulated in the earlier order of Tribunal) till the disposal of appeals or on the expiry of six months whichever is earlier.

Summary

Issues:
Extension of stay of recovery of disputed tax demand for multiple assessment years.

Analysis:
The Assessee filed three applications seeking an extension of the stay of recovery of disputed tax demands for three assessment years. The Assessee had complied with the directions of the Tribunal by making monthly payments towards the tax demands. The appeals had not been disposed of, and the non-disposal was not due to the Assessee. The Assessee requested an extension of the stay based on these grounds. The Departmental Representative opposed the extension of stay.

The Tribunal found that the Assessee had indeed complied with the payment conditions set by the Tribunal. It was noted that the appeals had not been disposed of, and this delay was not attributable to the Assessee. Referring to an earlier order, the Tribunal observed that the delay in disposal of the appeal was not due to the Assessee. Therefore, the Tribunal decided to extend the stay of the disputed tax demands subject to the Assessee continuing to make monthly payments as per the earlier order until the disposal of the appeals or the expiry of six months, whichever is earlier.

In conclusion, the Tribunal granted the extension of the stay of the disputed tax demands for the Assessee for all three assessment years. The stay was extended subject to the Assessee making monthly payments as directed in the earlier order until the disposal of the appeals or the lapse of six months, whichever occurred first. This decision was based on the Assessee's compliance with payment conditions and the non-disposal of appeals not being the Assessee's fault.

This judgment highlights the importance of compliance with tribunal orders and the circumstances under which an extension of stay of recovery of tax demands can be granted. The Tribunal's decision was based on the Assessee's adherence to payment conditions and the non-disposal of appeals not being attributable to the Assessee.