Stay of consequential proceedings after section 263 revision refused; limitation exclusion under section 153 not extended.

Proceedings giving effect to a revisionary order under section 263 were sought to be stayed, and the Tribunal examined whether such stay would also pause limitation under section 153. It accepted the Revenue's objection that the exclusion in Explanation 1 to section 153 did not extend to the period of stay granted by the Tribunal. The Tribunal also found no useful purpose in staying the consequential proceedings, as that would only delay the assessee's response to the Assessing Officer's requisition, while treating the request for early hearing of the appeal as appropriate. Stay of the proceedings was refused and the stay petition was dismissed.

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Issues: Whether stay of the consequential proceedings arising from the revisionary order under section 263 of the Income-tax Act, 1961 should be granted, and whether the period of stay would be excludable for the purpose of limitation under section 153 of the Income-tax Act, 1961.

Analysis: The assessee sought stay of proceedings giving effect to the revisionary order. The Tribunal accepted the Revenue's objection that the exclusion contemplated by Explanation 1 to section 153 did not extend to the period of stay granted by the Tribunal. It further held that no useful purpose would be served by staying the proceedings, since doing so would only delay the assessee's response to the Assessing Officer's requisition, though the assessee's request for early hearing of the appeal was considered appropriate.

Conclusion: Stay of the proceedings was refused and the stay petition was dismissed.

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