2020 (1) TMI 456 - AT - Income Tax

Interest u/s 234B and 234C - assessee has already made payment for this year which is about 50% of the disputed tax demand excluding interest - HELD THAT - We feel it proper to grant extension of stay already granted to the assessee. We order accordingly. The stay is extended for a further period of 4 months from the date of this order or till the disposal of these appeals whichever is earlier. The appeals for these two years are already fixed for hearing on 03.03.2020. We want to make it clear that the assessee should not seek any adjournment without justifiable reasons in the course of hearing of these appeals and if the assessee does so, then the stay granted. Stay Petitions filed by the assessee are allowed.

Summary

Issues:
Extension of stay granted by the Tribunal for Assessment Year 2015-16 and 2016-17.

Analysis:
The Stay Petitions were filed by the assessee seeking an extension of stay granted by the Tribunal for Assessment Year 2015-16 and 2016-17. During the hearing, the assessee's representative highlighted that the delay in the disposal of appeals for these years was not due to the assessee. The Revenue argued that despite granting an extension of stay, the assessee should be required to make further payments due to significant outstanding tax demands. For Assessment Year 2015-16, the disputed tax demand was approximately &8377; 1.36 crores, of which the assessee had already paid around 50%. Similarly, for Assessment Year 2016-17, the disputed tax demand was approximately &8377; 1.33 crores, with the assessee having paid about 50% as well. The Tribunal noted that there was no change in facts and that the delay was not attributable to the assessee. Considering the payments already made by the assessee, the Tribunal deemed it appropriate to grant an extension of stay. The stay was extended for an additional 4 months from the date of the order or until the disposal of the appeals, whichever is earlier. The Tribunal emphasized that the assessee should not seek adjournments without justifiable reasons during the hearing of the appeals; otherwise, the stay granted would be automatically vacated.

In conclusion, the Stay Petitions filed by the assessee were allowed, and the extension of stay was granted based on the assessee's compliance with payment and the lack of attributable delay in the disposal of appeals. The Tribunal set conditions for the extension of stay to ensure the timely progress of the appeal hearings without unnecessary delays.