2018 (9) TMI 2040 - AT - Income Tax

Stay petition - stay of demand was granted on the condition of the assessee depositing in four equal instalments - HELD THAT - The assessee deposited the said amounts and the copies of challans were found to be on record. Subsequently the stay was extended on 03/03/2017 and 08/09/2017 for a period of 180 days each. As further submitted that the matter was adjourned from time to time at the request of the revenue and also awaiting the directions of the Hon'ble VP on the application filed by the revenue for constitution of Special Bench to hear similar matters. This fact pleaded on behalf of the assessee is not controverted by the revenue, thereby making it clear that the reason for non-disposal of the appeal cannot be attributed to the conduct of the assessee - we are of the considered opinion that the extension of stay cannot be denied to the assessee. Though the revenue pleads for a direction against the assessee for deposit of some amount, we do not see any reason for changing the terms of the order dated 2nd of March 2016. Stay order dated 02/03/2016 (supra), extended thereafter from time to time is ordered to be further extended for 6 months or till the appeal is disposed of, whichever is earlier, subject to the rider that the assessee shall not delay the disposal of appeal in any manner, lest the stay granted shall stand vacated. The ld. AR submitted that now the matter is listed for hearing on 27th September, 2018 - Stay application of the assessee is allowed.

Summary

Issues: Stay extension sought by the assessee, reasons for extension, consideration of revenue's plea for deposit, duration of stay extension, assurance for timely appeal disposal.

In this case before the Appellate Tribunal ITAT Delhi, the assessee filed a Stay Application seeking an extension of the stay order originally granted on 2.3.2016 for the assessment year 2011-12. The original stay order required the assessee to deposit ?15 crores in four equal instalments by specific dates, which the assessee complied with as evidenced by the challans on record. The stay was subsequently extended multiple times, with the last extension granted for 180 days each on 03/03/2017 and 08/09/2017. The assessee argued that the delay in appeal disposal was due to adjournments at the revenue's request and the pending constitution of a Special Bench for similar matters, which was not contested by the revenue. Consequently, the Tribunal found no reason to deny the extension of stay to the assessee and maintained the original terms of the order dated 2nd of March 2016.

The Tribunal further decided to extend the stay order dated 02/03/2016 for an additional 6 months or until the appeal is disposed of, whichever is earlier. However, the assessee was cautioned not to cause any delay in the appeal's disposal, as any such delay would result in the vacation of the granted stay. The Tribunal noted that the matter was scheduled for a hearing on 27th September 2018. Ultimately, the Tribunal allowed the stay application of the assessee, providing clarity on the duration of the extension and emphasizing the importance of timely appeal disposal to maintain the stay order.

In conclusion, the Tribunal granted the extension of the stay order sought by the assessee, considering the reasons for the extension, the lack of attribution of delay to the assessee, the revenue's plea for deposit, the duration of the stay extension, and the assurance required for timely disposal of the appeal to uphold the stay. The decision was pronounced openly on 14th September 2018, ensuring transparency and adherence to the legal process.