2014 (4) TMI 940 - AT - Income Tax

Extension of stay of outstanding demand Denial of deduction u/s 80IA of the Act Held that - The extension of stay should be granted to the assessee the decision in Atos Information Technology vs. ITAT 2014 (3) TMI 729 - BOMBAY HIGH COURT followed - when there is no change in circumstances which first led to granting of stay and continuing of the same by the Tribunal and accepted by the revenue, there is no reason as to why the stay should not be extended thus, the stay is granted for a period of three months Decided in favour of Assessee.

Summary

Issues:
Extension of stay of outstanding demand.

Analysis:
The judgment pertains to a Stay Application filed by the assessee seeking an extension of stay of an outstanding demand amounting to Rs.152,18,83,218. Initially, the Tribunal had granted the stay considering the existence of a prima facie case, balance of convenience, and hardship. The Tribunal noted that the assessee had already paid a significant amount towards the outstanding demand. The stay was extended on various dates, with the last extension granted on 14/6/2013 for a further period of six months. The assessee's application for extension of stay was based on the pendency of appeals pertaining to earlier years, preventing the hearing of the current appeal. The assessee had never requested adjournments, and the major issue revolved around an addition of Rs.179.70 crores under section 80 IA of the Income Tax Act, where the assessee had a strong prima facie case. The Tribunal considered all facts and decided to grant an extension of stay for three months, citing relevant legal precedents and observations from previous orders.

The parties presented their arguments, with the Departmental Representative (DR) opposing the grant of stay to the assessee. After hearing both sides, the Tribunal carefully considered the factual position and concluded that the extension of stay should be granted to the assessee. The decision was based on the ratio laid down by the Hon'ble Jurisdictional High Court in a specific case, emphasizing that the assessee had not contributed to any delays in the appeal process. The Tribunal highlighted that the circumstances leading to the initial grant of stay had not changed, and there was no reason to deny the extension. The Tribunal extended the stay for a period of three months from the date of the order or until the disposal of the appeal, whichever was earlier. The final decision granted the stay in the manner specified, with the order pronounced in open court on 07/03/2014.