2019 (4) TMI 630 - HC - Income Tax

Stay of demand exceeding 365 days - whether delay in disposal of appeal is not attributable to the assessee - HELD THAT - The matter in issue is no longer res integra and stands concluded by the decision of this Court in M/S CARRIER AIR CONDITIONING AND REFRIGERATION LIMITED 2016 (5) TMI 396 - PUNJAB AND HARYANA HIGH COURT whereby identical question as claimed in the present appeal, has been held not to be substantial question of law.

Summary

Issues:
Delay in refiling the appeal, Substantial questions of law under Section 260A of the Income Tax Act, 1961.

Delay in Refiling the Appeal:
The judgment begins by condoning a delay of 24 days in refiling the appeal. This issue is addressed at the outset, indicating the procedural aspect of the case.

Substantial Questions of Law under Section 260A:
The appeal was filed by the revenue under Section 260A of the Income Tax Act, 1961, against the order of the Income Tax Appellate Tribunal. The appeal raised two substantial questions of law. The first question pertained to the ITAT's alleged contravention of the Second Proviso of Section 254(2A) by exceeding the combined period of stay beyond 365 days. The second question raised whether the ITAT's order should be considered void-ab-initio in light of the Third Proviso to Section 254(2A), which states that the stay of demand is vacated after 365 days, even if the delay in appeal disposal is not attributable to the assessee.

Analysis of Substantial Questions:
The judgment notes that the counsel for the revenue did not dispute that the matter in question had already been settled by a previous decision of the Court. Referring to a specific case, ITA-5-2016, decided on 25.4.2016, the Court had already ruled that the questions raised in the present appeal were not substantial questions of law. Consequently, the Court dismissed the present appeal, aligning with the decision made in the earlier case.

Conclusion:
Based on the precedent set by a previous judgment, the Court dismissed the appeal filed by the revenue, as the questions raised were deemed not to constitute substantial questions of law. This conclusion was drawn after considering the specific provisions of the Income Tax Act and the relevant case law, ultimately leading to the dismissal of the appeal.