2023 (12) TMI 1330 - AT - Income Tax

Extension of stay of outstanding demand - assessee took us through the ITAT s order 2023 (5) TMI 1349 - ITAT RANCHI and submitted that on the last occasion, stay was extended on the ground that there is no change in the facts and circumstances - HELD THAT - As the assessee has not sought any adjournment, rather applied for early hearing so that appeal could be disposed of on an early date. Due to certain unavoidable circumstances, namely non-functionality of the Bench or adjournment request at the end of the Revenue, this appeal could not be disposed of. Apart from the above fact, there is one more important fact brought to our notice, namely the assessee has filed a rectification application before the ld. DRP, whose disposal is still pending. According to the assessee, if that application is allowed, then, instead of any payment, assessee will be entitled for a refund. Therefore, while earlier extending the stay, Bench has observed that adjudication of that application has a bearing on the ultimate disposal of the appeal. We allow this application and extend the stay on the recovery of demand for a period of 180 days or till the disposal of the appeal, whichever event occurs first. The assessee will not seek any adjournment without unavoidable circumstances. The appeal be listed on the date already fixed. Stay Application of the assessee is allowed.

Summary

Issues involved:
Extension of stay of outstanding demand amounting to Rs.7,34,33,297

Analysis:
The Stay Application was filed by the assessee seeking an extension of the stay of the outstanding demand. The Counsel for the assessee referred to a previous order where the stay was extended due to the absence of any change in facts and circumstances. The Tribunal had granted an ad-interim stay in a previous order, emphasizing that no demand would be recovered until the application for rectification before the DRP was decided. The Tribunal allowed the application with specific directions, including the stay being in effect for 180 days or until the decision of the main appeal. The assessee had filed a rectification application before the DRP, which was still pending, and the outcome would impact the case's merits. Considering the circumstances, the Tribunal extended the stay for six months or until the disposal of the main appeal, whichever occurred earlier. The Tribunal noted that the assessee did not seek adjournment and applied for early hearing, but due to non-functionality of the Bench or adjournment requests by the Revenue, the appeal could not be heard. The Tribunal extended the stay on the recovery of demand for 180 days or until the appeal's disposal, emphasizing that the rectification application's adjudication was crucial. The assessee was instructed not to seek adjournment without unavoidable circumstances.

In conclusion, the Stay Application of the assessee was allowed, and the stay on the recovery of demand was extended. The order was pronounced in open court on a specified date.