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2015 (2) TMI 902 - HC - Income TaxExtension of stay refused - ITAT refused to extend the stay citing section 254(2A) which enjoins that the interim relief granted not to exceed one year - Held that - It is apparent that the ITAT was satisfied about the overall interest of justice when it, in fact, amended the interim relief in the first instance, i.e., on December 16, 2011. Whilst, the statutory provision which prevents it from extending the interim stay is undenied, yet this court's power under article 226 of the Constitution to pass appropriate orders in the interest of justice, equally cannot be denied. In the circumstances, the respondent is hereby restrained from enforcing the tax deduction in respect of the assessment year in question assessment year 2007-08, during the pendency of the petitioner's appeal. It would request the Tribunal to dispose of that appeal preferably within three months from today. - Decided in favour of assessee
Issues:
1. Extension of stay by the Tribunal citing section 254(2A) of the Income-tax Act, 1961. Analysis: The High Court addressed the issue of the Tribunal's refusal to extend the stay on the petitioner's appeal, citing section 254(2A) of the Income-tax Act, 1961. The petitioner had been the beneficiary of an interim order staying the demand in 2011, which the Tribunal continued to extend. However, the Tribunal rejected further extension on March 18, 2014, based on the provision that the interim relief granted should not exceed one year. The Court considered the submissions and acknowledged the Tribunal's satisfaction with the overall interest of justice when granting the interim relief initially. While the statutory provision limiting the extension of interim stay was recognized, the Court emphasized its power under article 226 of the Constitution to pass appropriate orders in the interest of justice. Consequently, the respondent was restrained from enforcing the tax deduction for the assessment year 2007-08 during the pendency of the petitioner's appeal. The Court also directed the Tribunal to expedite the disposal of the appeal within three months. In conclusion, the High Court allowed the writ petition, granting relief to the petitioner in the specified terms.
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