2021 (8) TMI 224 - HC - Income Tax

Stay of recovery of tax - Extension for further period of 120 days or until the pronouncement of the order - HELD THAT - Having regard to the submission made by the learned Senior Standing Counsel counsel appearing for the appellant-Revenue, since the Tribunal had already disposed of the main appeal 2016 (5) TMI 1249 - ITAT CHENNAI the appeal filed as against the interim order passed in the said appeal has become redundant. Accordingly, the Tax Case Appeal is dismissed as infructuous.

Summary

Issues:
Challenging an order passed by the Income Tax Appellate Tribunal regarding the stay of recovery of tax for the Assessment Year 2008-2009.

Analysis:
The Revenue filed an appeal against the order passed in S.P.No.122/Mds/2015 in I.T.A.No.2353/Mds/2012 for the Assessment Year 2008-2009. The appeal was admitted based on substantial questions of law regarding the Tribunal's decision on granting stay of recovery of tax. The questions raised were related to the interpretation of Section 254(2A) of the Income Tax Act. During the hearing, it was highlighted that the main appeal in I.T.A.No.2353/Mds/2012 had been disposed of by the Income Tax Appellate Tribunal, rendering the appeal against the interim order redundant.

Upon considering the submissions made by the Senior Standing Counsel for the appellant-Revenue, the Court noted that since the main appeal had already been disposed of by the Tribunal, the appeal challenging the interim order had become infructuous. Consequently, the Tax Case Appeal was dismissed as infructuous. However, the Court decided to keep the questions of law raised in the appeal open for consideration in an appropriate appeal in the future. No costs were awarded in this matter. The judgment focused on the procedural aspect of the appeal becoming redundant due to the disposal of the main appeal, emphasizing the importance of timely and relevant legal actions in such cases.