2020 (5) TMI 463 - AT - Income Tax

Extension of the stay of demand - pandemic Covid-19 situation and worldwide lockdown - limited working of courts - HELD THAT - Due to the extraordinary circumstances arising on account of COVID-19 Virus, the Hon ble Delhi High Court has taken suo-moto cognizance and initially passed an order where any interim orders concerning stay, etc. would stand automatically extended till 25.03.2020 or until further orders 2020 (3) TMI 1186 - DELHI HIGH COURT . Thereafter, the Hon ble Delhi High Court vide its order 2020 (5) TMI 417 - DELHI HIGH COURT has further extended the period of interim order till 15.06.2020 or until further orders. In case, the extension as mentioned hereinabove of the interim order causes any hardship of an extreme nature to any party to such proceeding, they are at liberty to avail appropriate remedy as per law. At present, there is no necessity to go into the merits of the captioned stay application

Summary

Issues: Stay application seeking extension of stay against the recovery of outstanding demand.

Analysis:
The applicant filed a stay application seeking an extension of stay against the recovery of an outstanding demand of ?1,00,24,218. During the hearing, the applicant's representative highlighted a previous order by the Tribunal in a similar case where protection was granted till the date of hearing, ensuring the assessee's interest is safeguarded. The appeal was scheduled for a hearing on 11.06.2020. On the other hand, the Revenue representative acknowledged that the Delhi High Court had already extended the stay on recovery proceedings until 15.06.2020. The Tribunal considered the extraordinary circumstances due to the COVID-19 pandemic and the orders issued by the Delhi High Court. The High Court had automatically extended interim orders concerning stay matters until 15.06.2020 or until further orders, taking into account the ongoing restrictions imposed by the Government of India. Consequently, the Tribunal decided that there was no need to delve into the merits of the stay application as the existing stay order was extended until 11.06.2020 based on the High Court's order. The applicant's request for protection till the date of hearing was granted, and the stay application was allowed.