9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (5) TMI 444 - AT - Income TaxExtension of the stay of demand - pandemic Covid-19 situation and worldwide lockdown - limited working of courts - HELD THAT - Having taken note of such extraordinary situation, the Hon'ble Supreme Court of India in Suo Motu Writ Petition 2020 (5) TMI 418 - SC ORDER exercised the power under Article 142 read with Article 144 of the Constitution of India, and mitigated the difficulties that would be faced by the litigants across the country in filing their petitions/applications/suits/appeals/all other proceedings within the period of limitation prescribed under the general law of limitation or under Special Laws by extending such period of limitation with effect from 15th March, 2020 till further orders. Similarly, Hon'ble Delhi High Court 2020 (3) TMI 1186 - DELHI HIGH COURT took suo motu cognizance of the extraordinary circumstances prevailing on account of nationwide lockdown necessitated due to the spread of COVID-19, and directed that, in all matters pending before it or any courts subordinate to it, where any interim orders concerning stay, etc. were subsisting as on 16th March, 2020 and which were to expire thereafter, the same shall stand automatically extended till 15th May, 2020 or until further orders. As in the present case the stay already granted by the Tribunal vide order dated 8th November, 2020 stood extended till 15th June, 2020 by virtue of the order of the Hon'ble Delhi High Court 2020 (5) TMI 417 - DELHI HIGH COURT - We may also note here the submission made by the learned representative of the assessee that, as in the past, the assessee is ready to proceed with the hearings of the appeals on the next date of hearing on 17th June, 2020, and that the stay be extended till such date.
Issues:
Extension of stay of demands disputed in appeals for assessment years 2012-13 to 2014-15. Analysis: The applicant, a company engaged in software development and IT services, filed a return for assessment year 2012-13 declaring total income of ?113,27,64,340. The Assessing Officer assessed the total income at ?151,5053,703, with major disputes on transfer pricing adjustment, disallowance of expenditure, disallowance of deduction under Section 10AA, and disallowance of foreign exchange loss. The applicant challenged these additions in appeal before the Tribunal. The outstanding disputed demand was reduced to ?19,31,43,440, with approximately 22% adjusted/deposited by the assessee. The stay of demand was last extended till 12th April, 2020, and was further extended due to COVID-19 related delays in hearings. The COVID-19 pandemic and subsequent lockdown led to a significant curtailment of the Tribunal's functioning, affecting the hearing schedule. The Hon'ble Supreme Court and Hon'ble Delhi High Court extended the period of limitation for filing proceedings, which impacted the stay of demand in this case. The applicant sought an extension of the stay beyond 15th May, 2020, citing the exceptional circumstances and the need for urgent hearing. The Hon'ble Courts had also extended interim orders till 15th June, 2020, considering the ongoing situation. The Tribunal acknowledged the extraordinary circumstances due to the COVID-19 pandemic and the challenges faced by litigants. The Hon'ble Supreme Court and Hon'ble Delhi High Court's orders regarding the extension of interim orders were considered, leading to the decision to extend the stay of demand till 17th June, 2020, aligning with the next scheduled hearing date for the appeals. The CBDT's pragmatic approach of not communicating adverse effects to taxpayers during this period was also noted. In conclusion, the Tribunal decided not to delve into the merits of the applications, given the extension of the stay till the next hearing date. The stay of demand was extended till 17th June, 2020, based on the orders of the Hon'ble Courts and the readiness of the assessee to proceed with the appeals on the scheduled date. The decision was made considering the exceptional circumstances and the practical challenges faced by taxpayers during the pandemic.
|
