2016 (6) TMI 1412 - AT - Income Tax

Stay petition - stay was granted by the Tribunal for a period of 180 days with a condition that the assessee should make payment of 50% of the total demand - HELD THAT - We find that on earlier occasion stay was granted by the Tribunal subject to payment of 50% of the outstanding demand i.e Rs. 3.46 Crores and the assessee had made this payment. Appeal was fixed for hearing on 05- 01-2016 and that day hearing could not take place for some reasons not attributable to the assessee and therefore we feel it proper to grant extension of stay for a further period of 180 days from the date of expiry of earlier stay order or till the disposal of the appeal whichever is earlier. We want to make it clear that the assessee should not seek adjournment during the course of hearing of this appeal without any valid and compelling reasons and if the assessee seeks adjournment without any valid and compelling reasons then the stay should stand automatically vacated.

Summary

Issues: Stay of outstanding demand

Analysis:
The Appellate Tribunal ITAT Bangalore considered a stay petition filed by the assessee seeking a stay of the outstanding demand amounting to Rs. 34,587,830. The assessee had previously been granted a stay by the Tribunal subject to the condition of making a payment of 50% of the total demand, which the assessee complied with by paying Rs. 3.46 Crores. However, due to the appeal being transferred to another bench, the hearing scheduled for 05-01-2016 did not take place. The Tribunal, noting that the delay was not attributable to the assessee, granted an extension of stay for a further 180 days from the expiry of the earlier stay order or until the disposal of the appeal, whichever is earlier.

The Tribunal emphasized that the assessee should not seek adjournment during the appeal hearing without valid and compelling reasons. It was made clear that if the assessee seeks adjournment without valid reasons, the stay would automatically stand vacated. Ultimately, the Tribunal allowed the stay petition of the assessee on the terms mentioned, ensuring a fair and balanced approach to the extension of the stay of the outstanding demand.

This judgment showcases the Tribunal's consideration of the circumstances surrounding the extension of stay for the outstanding demand, ensuring fairness to both the assessee and the revenue department. The decision reflects a balance between granting relief to the assessee due to uncontrollable circumstances while also imposing conditions to prevent misuse of the stay facility during the appeal process.