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2021 (4) TMI 433 - AT - Income TaxStay petition for extension of the stay - Tribunal has granted further extension of stay of outstanding demand for a period of six months or till disposal of the appeals whichever is earlier - subsequent to orders of Hon ble Tribunal in extension of stay, the cases were listed and also the interim orders were passed. In the present stay petitions, the assessee seeking extension of stay which was granted earlier and the interim orders passed. The Ld.AR emphasized that the delay in non disposal of appeal is not attributed to the assessee and referred to the explanations filed along with the Stay petitions - HELD THAT - We find the Hon ble Delhi High Court in Pepsi Foods (P) ltd Vs ACIT 2015 (5) TMI 655 - DELHI HIGH COURT has observed that when the delay is not attributed to the assessee, the Tribunal has power to extend the stay even beyond the time limit laid down in 3r d proviso to Sec 254(2)A of the Act We considering the facts, circumstances and stay petitions hold that the delay in non disposal of the appeal is not attributable to the assessee. Hence, the balance of convenience lies in the favour of the assessee for extension of stay as the assessee complied with the directions of the Hon ble Tribunal. Accordingly, we extend the stay of outstanding demand for further period of six months from the date of this order or till disposal of the appeal whichever is earlier.
Issues:
1. Extension of stay granted by the Income Tax Appellate Tribunal Delhi Bench. 2. Compliance with directions of the Hon'ble Tribunal in deposit of Income Tax instalments. 3. Delay in disposal of appeals and its attribution to the assessee. 4. Objection by the Department for extension of stay and insistence on tax payment. 5. Application of legal principles regarding extension of stay beyond the specified time limit. Issue 1: Extension of stay granted by the Income Tax Appellate Tribunal Delhi Bench The assessee company filed five stay petitions seeking extension of stay granted earlier by the Income Tax Appellate Tribunal Delhi Bench in relation to outstanding demands raised by the Revenue. The Tribunal had previously stayed the demands with specific directions. The company had complied with the directions by depositing Income Tax instalments and had reasons for seeking the extension of stay. Issue 2: Compliance with directions of the Hon'ble Tribunal in deposit of Income Tax instalments The company, through its representative, explained the sequence of events and proceedings before the ITAT, highlighting the compliance with the Tribunal's directions on depositing Income Tax instalments. The company had filed detailed notes with the stay petitions, demonstrating adherence to the Tribunal's directives and reasons justifying the extension of stay. Issue 3: Delay in disposal of appeals and its attribution to the assessee The delay in the non-disposal of appeals was deemed not attributable to the assessee. The company had filed separate stay petitions for different assessment years, emphasizing that the delay was not caused by them. The Department objected to the extension of stay, insisting on tax payment. Issue 4: Objection by the Department for extension of stay and insistence on tax payment During the hearing, the Department objected to the extension of stay and advocated for tax payment. However, the company's representative argued that the delay in appeal disposal was not due to the assessee, justifying the extension of stay to prevent the recovery of demands. Issue 5: Application of legal principles regarding extension of stay beyond the specified time limit The Tribunal considered the facts, circumstances, and stay petitions, concluding that the delay in appeal disposal was not the fault of the assessee. Citing legal precedents, including the decision in Pepsi Foods (P) Ltd vs. ACIT, the Tribunal held that when the delay is not attributable to the assessee, the Tribunal has the power to extend the stay beyond the time limit specified in the law. Consequently, the Tribunal granted the extension of stay for a further period of six months or until the disposal of the appeal, whichever is earlier, in favor of the assessee, as they had complied with the Tribunal's directions. This comprehensive analysis of the judgment highlights the key issues addressed by the Income Tax Appellate Tribunal Delhi Bench and the legal principles applied in granting the extension of stay in favor of the assessee.
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