2019 (3) TMI 1548 - HC - Income Tax

Stay of the demand - Bench of the Income Tax Appellate Tribunal, Patna Bench is not available that the appeal is delayed thus raising apprehensions for the petitioner regarding enforcement of the demand by the Department dated 15.11.2018 - HELD THAT - This matter was heard on 08.01.2019 and on the request made by Ms. Archana Sinha, learned counsel representing the Income Tax Department and to enable her to seek instructions that the matter was adjourned and is taken up today when Ms. Archana Sinha accepts the position regarding non-availability of the concerned Bench of Appellate Tribunal but submits that steps are being taken for its constitution and thus even if, this Court be persuaded to grant interim protection to the petitioner, it be for a limited period coupled with a direction to the petitioner of cooperating in the expeditious disposal of the appeal, as and when the Appellate Tribunal is constituted. Mr. Pathy, fairly accepting the submissions so made, submits that there would be no lapse on behalf of the petitioner in cooperating in expeditious disposal of the appeal. Having considered undisputed position existing regarding nonavailability of the Appellate Bench, we deem it proper to order for stay of the demand notice dated 15.11.2018 impugned at Annexure-4 Series to the writ petition until the constitution of the Appellate Bench and its expeditious hearing/disposal by the concerned bench.

Summary

Issues:
Stay of demand notice dated 15.11.2018 for the Financial Year relevant to the Assessment Year 2017-18 pending appeal before the Income Tax Appellate Tribunal, Patna Bench.

Analysis:
The petitioner, aggrieved by the order of the Commissioner, Income Tax (Appeals), Patna, filed an appeal before the Income Tax Appellate Tribunal, Patna Bench on 20.11.2018. However, due to the unavailability of the Appellate Bench, the appeal was delayed, causing concerns for the petitioner regarding the enforcement of the demand notice dated 15.11.2018. The petitioner sought a stay on the authorities of the Income Tax Department from acting on the demand notice until the appeal is heard. The petitioner's counsel emphasized the delay was due to the nonavailability of the Bench, not the petitioner's fault.

During the hearing, the counsel for the Income Tax Department acknowledged the nonavailability of the Appellate Bench and assured steps were being taken for its constitution. The department's counsel proposed that if interim protection was granted to the petitioner, it should be for a limited period, with a direction for the petitioner to cooperate in the expeditious disposal of the appeal once the Bench is constituted. The petitioner's counsel agreed that the petitioner would fully cooperate in the speedy resolution of the appeal.

After hearing both parties and considering the circumstances, the Court deemed it appropriate to stay the demand notice dated 15.11.2018 until the Appellate Bench is constituted and the appeal is heard and disposed of promptly. The Court allowed the writ petition with the specified directions, ensuring the petitioner's rights were protected during the appeal process.