2013 (11) TMI 821 - AT - Income Tax

Application for stay of Revision proceedings u/s 263 - revenue contended that, stay of proceedings in respect of the consequential order passed under section 263. It was the submission that once stay petition is granted, normally it operates for 180 days and another extension of 180 days could be granted resulting a total loss of one year time - Held that - stay should not be granted in this case and the same stands dismissed. - Decided against the assessee.

Summary

Issues: Stay of proceedings in relation to an order passed under section 263 for the assessment year 2005-06.

Analysis:
The Stay Petition was filed by the assessee in response to the order passed under section 263 for the assessment year 2005-06. The assessee's representative, Shri Miraj D. Shah, argued for the stay of proceedings following the order issued by the CIT-XIX, Kolkata. The original assessment under section 143(3) was challenged through the 263 order dated 15.02.2010, with a subsequent order on 06.07.2010. Another 263 order was initiated on the same grounds, leading to the current stay petition seeking relief from the consequential proceedings. On the other hand, Shri Rajesh Kumar, representing the Revenue, opposed the stay, highlighting the implications of granting it, especially concerning the limitation period under section 153. The argument was made that the exclusion provided in Explanation 1 to section 153 did not cover the period of stay granted by the Tribunal, thus suggesting that the stay should not be granted.

The Tribunal considered the submissions from both sides and deliberated on the implications of granting the stay. It was noted that the exclusion specified in Explanation 1 to section 153 did not encompass the period of stay granted by the Tribunal. The Tribunal found the Revenue's argument regarding the potential delay in the assessee's response to the Assessing Officer's requisition as a valid concern. Consequently, the Tribunal decided not to grant the stay in this case, leading to the dismissal of the Stay Petition. However, acknowledging the assessee's request, the Tribunal granted an early hearing for the appeal. The appeal was scheduled for an early hearing on 03.07.2013, with the Registry instructed to post the appeal before the Bench on the specified date without issuing a separate notice to the assessee. The order was pronounced in the open Court on 24th May 2013.