2018 (12) TMI 1561 - AT - Income Tax

Extension of stay order - Inordinate delay in fixation of hearing of special benches cases - reasons for delay - Held that - With the consent of the parties, the hearing of the related appeals is scheduled for 13th February 2019. As the date is announced in the open court, there is no need of issuing formal notices in this regard. As the delay in disposal of these appeals is not on account of any lapse on the part of the assessee, and as there is no change in the material facts and circumstances vis- -vis the material facts and circumstances when the stay was originally granted in this case, the stay on collection/ recovery of outstanding demands of tax and interest, as set out in first paragraph earlier, is extended till 180 days from the date of this order or till the disposal of these appeals- whichever is earlier. Ordered, accordingly.

Summary

Issues:
Extension of stay granted by the Tribunal for balance income tax and interest demands for assessment years 2007-08 and 2008-09 pending before a Special Bench.

Analysis:
The stay applications sought extension for the outstanding payable amounts of income tax and interest for assessment years 2007-08 and 2008-09. The total demand for 2007-08 was ?41,80,729, out of which ?24,50,000 was paid, leaving a balance of ?17,30,730. Similarly, for 2008-09, the total demand was ?1,20,59,673, with ?67,00,010 paid, and ?53,59,663 outstanding. The assessee highlighted the delay in the hearing of appeals despite the constitution of a special bench almost two years ago. The counsel referred to Section 254(2A) of the Income Tax Act, emphasizing the legislature's intent for expeditious hearing of stay granted appeals within one year. The counsel urged for directions to ensure timely disposal and requested an extension of stay until the matter's hearing.

The Departmental Representative did not oppose the extension of stay and also sought earliest disposal of the appeals. The Tribunal noted the delay in fixing the hearing of the special bench case and emphasized the importance of timely disposal of such cases. Guidelines were formulated for expeditious hearing of cases referred to Special Benches and Third Members, emphasizing commencement of hearing within 120 days of constitution. Adjournments were restricted, and cooperation of all stakeholders was deemed necessary for timely disposal. The Tribunal scheduled the hearing of related appeals for 13th February 2019 with the consent of parties, extending the stay on outstanding demands until 180 days from the order date or until appeal disposal, whichever is earlier.

In conclusion, the stay applications were allowed, and the stay on outstanding demands was extended. The Tribunal highlighted the need for expeditious disposal of cases referred to Special Benches and Third Members, emphasizing timely hearings and cooperation for effective resolution of appeals.