2021 (8) TMI 981 - AT - Income Tax

Stay of recovery proceedings - Grant of stay for six months or till the disposal of the appeal, whichever occurs first - HELD THAT - We find that the facts and circumstances which prevailed with our Coordinate Bench in granting stay on the recovery of the demand, continues to prevail. It is also borne out from the records that the delay in disposal of appeal pending before the tribunal cannot be attributable to the conduct of the applicant-assessee. Now, it has been brought out that the corresponding appeal is listed for hearing before a regular bench on 06.09.2021 and applicant is ready to argue the same. In these circumstances, we deem it fit and proper to extend the stay on the recovery of outstanding demand for a period of 180 days from today or till the disposal of the appeal, whichever is earlier.

Summary

Issues: Stay application under section 35A of ITAT Rules for extension of stay of outstanding demand.

Analysis:
1. The applicant sought an extension of stay on the outstanding demand of ?12,72,54,710. The initial stay was granted for 6 months subject to payment of ?2,50,00,000. The Assessing Officer adjusted a refund of ?4,15,30,590 against the disputed demands, which accounted for almost 32% of the disputed demand.

2. The stay on recovery of the disputed demand had been extended by the Tribunal from time to time, with the latest extension granted until 06.6.2021. Due to the pandemic, the Delhi High Court extended the stay in all cases with interim orders till 16.7.2021. The applicant's stay was also extended accordingly. The appeals were scheduled for hearing but not concluded, with the next hearing set for 06.09.2021. The applicant contended that no delay could be attributed to them in the appeal's disposal.

3. The Departmental Representative acknowledged that 32% of the total demand had been paid but suggested that since the applicant had enjoyed the stay for over six years, more amount should be deposited. The applicant argued that most issues were likely to be decided in their favor based on previous tribunal or High Court orders, hence no further payment should be insisted upon.

4. The Tribunal found that the circumstances justifying the initial stay still existed, and the delay in appeal disposal was not due to the applicant's conduct. The corresponding appeal was listed for a regular bench hearing on 06.09.2021, and the applicant was prepared to argue. Consequently, the Tribunal extended the stay on the recovery of the outstanding demand for 180 days or until the appeal's disposal, whichever occurred earlier.

5. The Tribunal emphasized the need for both parties to proceed with arguments on the next hearing date to expedite the appeal's disposal. The stay application was disposed of accordingly on 06-08-2021.