Stay against tax recovery extended beyond 365 days where appeal delay was not attributable to the assessee.

A prima facie case justified extension of stay against recovery of outstanding tax arrears beyond 365 days where the delay in disposal of the appeal was not attributable to the assessee. In the interest of justice, the existing stay was extended despite the extended period exceeding 365 days. The stay was continued for a further 180 days or until disposal of the appeal, whichever was earlier, and the request for extension was allowed.

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Issues: Whether the stay against recovery of outstanding tax arrears should be extended beyond 365 days and, if so, for what period.

Analysis: The assessee was found to have made out a prima facie case for extension of stay. The delay in disposal of the appeal was held not to be attributable to the assessee. In these circumstances, and in the interest of justice, the existing stay was extended, notwithstanding that the extension went beyond 365 days.

Conclusion: The stay against recovery was extended for a further period of 180 days or until disposal of the appeal, whichever was earlier, and the request for extension was allowed.

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