2011 (5) TMI 295 - AT - Income Tax

Application for stay - It is not in dispute that the conditions imposed by the Tribunal in the said order have been duly complied with by the assessee - There are no change in circumstances that prevailed when the order of stay was granted on 24-11-2010 - the stay of recovery of outstanding demand from 23-5-2011 for a period of 180 days or disposal of the appeal whichever is earlier - the stay application is allowed

Summary

Issues: Stay of recovery of outstanding demand extension under section 254(2A) of the Income-tax Act, 1961.

Analysis:
The case involved an application filed by the assessee seeking an extension of the stay of recovery of outstanding demand, which was initially granted by the Tribunal in a previous order dated 24-11-2010. The assessee had complied with the conditions imposed in the previous order, and an out-of-turn hearing of the appeal had been granted. However, due to delays in the disposal of the appeal, the stay period granted was set to expire on 23-5-2011.

Under section 254(2A) of the Income-tax Act, 1961, the Tribunal has the authority to grant an extension of stay. In this case, the delay in the disposal of the appeal was not the fault of the assessee, and there were no changes in circumstances since the original stay was granted. Therefore, the Tribunal deemed it appropriate to extend the stay of recovery of outstanding demand from 23-5-2011 for a further period of 180 days or until the disposal of the appeal, whichever came earlier. The Tribunal ordered the stay application to be allowed accordingly.

In conclusion, the Tribunal granted the extension of the stay of recovery of outstanding demand based on the provisions of section 254(2A) of the Income-tax Act, 1961, considering the circumstances of the case where the delay in appeal disposal was not attributable to the assessee, and there were no changes in relevant circumstances since the original stay was granted.