2020 (8) TMI 233 - AT - Income Tax

Stay petition - Hon ble Bombay High Court had been passing interim orders from time to time stating that the limitation getting expired during the lockdown period - HELD THAT - Stay which had expired during the lockdown period, as is in the case of the present assessee, need to be automatically extended till 31/08/2020. Accordingly, we are inclined to extend the stay of demand till 31/08/2020.

Summary

Issues:
Stay application for demand of ?5,42,43,832 for A.Y. 2013-14.

Analysis:
The assessee filed a stay application seeking to keep the existing demand of ?5,42,43,832 for the assessment year 2013-14 in abeyance. It was noted that the assessee had already paid ?96,55,818 before filing the stay petition. The Tribunal had previously kept the demand in abeyance for three months through a stay order dated 28/01/2020, which expired during the lockdown period. The Hon'ble Bombay High Court had issued interim orders extending the limitation period due to the prevailing pandemic situation. In a specific order dated 15/07/2020, the High Court extended the limitation period till 31st August 2020. Given these circumstances, the Tribunal decided to extend the stay of demand till 31/08/2020. Consequently, the stay petition of the assessee was allowed, and the order was pronounced on 24/07/2020.

This judgment highlights the importance of considering the impact of external circumstances, such as the COVID-19 pandemic and associated lockdowns, on legal proceedings and timelines. The extension of the stay of demand till 31/08/2020 demonstrates the judicial recognition of the challenges faced by parties in meeting their obligations during extraordinary situations. The decision reflects a balance between upholding legal requirements and ensuring fairness and practicality in light of exceptional circumstances.