2023 (5) TMI 1349 - AT - Income Tax

Extension of grant of ad-interim stay of the outstanding demand - HELD THAT - As assessee has submitted that the appeal was fixed for hearing but the same could not be heard either due to the reason that Bench did not function on the said date or the ld. D/R sought adjournment. Assessee has also filed a rectification application before the ld. Dispute Resolution Panel (DRP) which is still pending, outcome of which will have a bearing on the merits of the present case. We deem it appropriate to extend the grant of the stay for six months or till the disposal of the main appeal before the Tribunal, whichever is earlier. The application for extension of stay is disposed of with the above terms.

Summary

Issues involved:
1. Extension of grant of ad-interim stay of outstanding demand amounting to Rs. 7,34,33,297.
2. Disposal of rectification application before the Dispute Resolution Panel (DRP) and its impact on the case.
3. Decision on extending the stay for six months or until the disposal of the main appeal before the Tribunal.

Detailed Analysis:
Issue 1: The Appellate Tribunal ITAT was approached for the extension of the ad-interim stay of the outstanding demand of Rs. 7,34,33,297. The Tribunal had earlier granted a stay with specific directions, including no recovery until the rectification application before the DRP was decided. The Tribunal adjourned the hearing previously, expecting the application's early disposal before the DRP. However, with no progress in the last month, the Tribunal deemed it proper to allow the application with conditions, including the stay remaining in operation for 180 days or until the main appeal decision, whichever is earlier.

Issue 2: The assessee informed the Tribunal that the appeal was scheduled for a hearing but could not proceed due to the Bench's non-functioning or adjournment sought by the ld. D/R. The assessee had also filed a rectification application before the DRP, which was still pending and could impact the case's merits. Considering these circumstances, the Tribunal found it appropriate to extend the stay for six months or until the main appeal's disposal before the Tribunal, whichever occurs earlier.

Issue 3: In the final order pronounced on 24th May, 2023, at Kolkata, the Tribunal disposed of the application for the extension of stay with the terms mentioned above. The decision aimed to ensure fairness and proper consideration of the pending rectification application before the DRP, emphasizing the need for a just and reasonable outcome in the ongoing legal proceedings.