2019 (2) TMI 1687 - AT - Income Tax

Stay of recovery of outstanding demand - HELD THAT - Undisputedly, the assessee has complied to the conditions of stay. Thereafter, the stay has been extended from time to time and the last order by the Tribunal extending stay recovery of the outstanding demand was passed on 26th October 2018, vide S.A. no.428/Mum./2018. Notably, on 17th December 2018, when the corresponding appeal of the assessee was fixed for hearing before the Tribunal, Department sought adjournment and on the request of the Department, the appeal was adjourned to 27th February 2019. Thus, as could be seen, non disposal of the corresponding appeal of the assessee is not attributable to the assessee. Since the assessee s appeal is now fixed on 27th February 2019, we are inclined to extend the stay recovery of outstanding demand till the disposal of the corresponding appeal of the assessee or for 180 days from the date of this order, whichever is earlier. Stay application is allowed.

Summary

Issues: Extension of stay recovery of outstanding demand for assessment year 2011-12.

Analysis:
The judgment pertains to an application seeking an extension of stay for the recovery of outstanding demand for the assessment year 2011-12. Initially, the stay was granted subject to certain conditions, which the assessee complied with. Subsequently, the stay was extended multiple times, with the last extension granted on 26th October 2018. Notably, the non-disposal of the corresponding appeal of the assessee was not due to any fault of the assessee but rather due to adjournments sought by the Department. The Tribunal, considering these circumstances, decided to extend the stay recovery of the outstanding demand until the disposal of the corresponding appeal of the assessee or for 180 days from the date of the order, whichever is earlier.

The judgment highlights the importance of compliance with conditions for the grant of stay and the role of the Tribunal in ensuring fairness and justice in the proceedings. It also underscores the principle that delays in the disposal of appeals should not prejudice the rights of the parties involved. The decision to extend the stay recovery reflects the Tribunal's consideration of the circumstances and commitment to upholding the principles of natural justice and procedural fairness. The order was pronounced in the open court on 08.02.2019, granting the stay application in favor of the assessee.