2019 (8) TMI 1476 - AT - Income Tax

Stay petition - applications seeking extension of stay granted - as submitted that the assessee has duly complied with the orders passed by the Tribunal and High Court in paying instalments before the due dates mentioned in the stay order AND appeal was posted for hearing on 03-07-2019, but on that date, the revenue sought adjournment - HELD THAT - Balance of convenience is in favour of granting extension of stay, since the assessee has complied with the terms of the earlier order granting stay and further the non-disposal of the appeal was not on account of the assessee. Accordingly, we grant stay for a further period of six months from the date of this order or till the date of disposal of appeal, whichever period expires earlier. We make it clear that the assessee should not seek adjournment on the date of hearing without reasonable cause, failing which the present stay order shall be subjected to review by the division bench hearing the appeals.

Summary

Issues: Stay extension for assessment years 2013-14, 2014-15, and 2016-17.

Analysis:
1. The assessee filed stay applications seeking an extension of the stay granted for assessment years 2013-14, 2014-15, and 2016-17. The Tribunal had initially granted stay subject to the payment of a certain amount in instalments. The revenue challenged this order before the High Court, which reduced the number of instalments. The assessee complied with the payment schedule set by both the Tribunal and the High Court. The appeal was scheduled for hearing, but the revenue sought adjournment, leading to a delay in the disposal of the appeal.

2. The Counsel for the assessee argued that the delay in disposing of the appeal was not due to any fault of the assessee. The Departmental Representative did not dispute the facts presented by the Counsel. However, the Department sought a direction for the assessee to pay additional tax.

3. After considering the submissions, the Tribunal found that the balance of convenience favored granting an extension of the stay. The Tribunal noted that the assessee had adhered to the terms of the earlier stay order and that the delay in appeal disposal was not attributable to the assessee. Consequently, the Tribunal extended the stay for a further six months from the date of the order or until the appeal's disposal, whichever occurred earlier. The Tribunal cautioned that the assessee should not seek adjournment without a reasonable cause during the hearing. Failure to comply would lead to a review of the stay order by the division bench hearing the appeals.

4. As a result, all stay applications were allowed, and the order was pronounced in the open court on 09-08-2019.