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2019 (3) TMI 1062 - AT - Income TaxTribunal power to extend the period of stay - Stay of recovery of outstanding demand - delay in non disposal of the appeal - HELD THAT - The law is by now well settled that if the delay in non-disposal of the appeal is not attributable to the assessee, then the Tribunal has power to extend the period of stay even beyond the time limit laid down in third proviso to section 254(2A) of the Act. Reference may be made to the decision of Pepsi Foods (P) Ltd. v. ACIT, 2015 (5) TMI 655 - DELHI HIGH COURT which was followed by M/s. SAP Labs (I) Pvt. Ltd. v. ACIT, 2016 (2) TMI 398 - ITAT BANGALORE . There are no change in the facts and circumstances of the case as it existed when the tribunal granted an order of stay. In these circumstances, we are of the view that there should be an order of stay for a period of 6 months from today or till the disposal of the appeal of the assessee, whichever is earlier.
Issues:
Extension of stay order for outstanding demand beyond 180 days. Analysis: The judgment revolves around an application for extending the stay order on the recovery of an outstanding demand issued by the Tribunal. The original order dated 5.2.2018 granted a stay on the recovery of &8377; 2,95,37,104 arising from an assessment under section 143(3) r.w.s 144C of the Income Tax Act, 1961. The applicant sought an extension beyond the 180-day limit set by the first proviso to sec. 254(2A) of the Act due to delays in the disposal of the appeal not attributable to the assessee. The Tribunal noted that the delay in the appeal's disposal was not due to any fault of the assessee. Citing legal precedents, including the decision of the Hon'ble Delhi High Court in Pepsi Foods (P) Ltd. v. ACIT, 376 ITR 87 (Del), and the ITAT Bangalore Bench in M/s. SAP Labs (I) Pvt. Ltd. v. ACIT, 67 taxmann.com 78, it was established that if the delay is not the assessee's fault, the Tribunal has the authority to extend the stay period beyond the statutory limit. The judgment emphasized that the circumstances remained unchanged from when the original stay order was granted. Therefore, the Tribunal decided to allow the stay petition and extended the stay for a period of 6 months from the date of the judgment or until the disposal of the appeal, whichever is earlier. This decision was based on the principle that the delay in the appeal process, not caused by the assessee, warranted an extension of the stay beyond the statutory limit. The judgment was pronounced on 18th January 2019, granting the requested extension of the stay order on the recovery of the outstanding demand.
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