2018 (4) TMI 1270 - AT - Income Tax

Stay of demand extension - Held that - Stay order was extended from time to time, that matter was partly hard on 19/02/2018, that the next date of hearing is 02/04/2018. A fit case for staying the demand for a further period of six months or till the disposal of the appeal by the Tribunal whichever is earlier. Application, filed by the assessee for extension of stay of demand, stands allowed.

Summary

Issues: Application for extension of stay of demand

Analysis:
- The assessee requested an extension of the order staying the demand for a specific assessment year. The initial order directed the assessee to pay a demand of ?10 crore in equal installments, following which a stay was granted for six months. The assessee complied with the payment schedule directed by the tribunal, and the stay order was extended on multiple occasions until the last order was passed on 29/09/2017. The matter was partly heard on 19/02/2018, with the next hearing scheduled for 02/04/2018. The assessee sought an extension of the stay order until the disposal of the appeal by the tribunal.

- During the hearing, the Authorised Representative reiterated the submissions made in the application, while the Departmental representative left the issue to the Bench's discretion. Upon reviewing the material, it was noted that the tribunal had initially stayed the demand in January 2016, and the assessee had already paid ?10 crores as directed. The stay order had been extended periodically, with the most recent hearing on 19/02/2018 and the next scheduled for 02/04/2018. Based on these circumstances, the tribunal found it appropriate to grant a further extension of the stay for six months or until the disposal of the appeal by the tribunal, whichever comes earlier.

- Consequently, the application filed by the assessee for the extension of the stay of demand was allowed. The order was pronounced in the open court on 23rd March 2018.