Tribunal Cannot Extend Stay Beyond 365 Days: High Court Upholds Balance Amount Stay Pending Appeal

The High Court clarified that the Tribunal lacks authority to extend stay beyond 365 days. As the petitioner's appeal was delayed for reasons not attributable to them, the High Court decided that the petitioner cannot approach the Tribunal for further extension of stay. However, considering the active appeal proceedings and previous court orders, the High Court continued the stay on recovery of the balance amount until the appeal's disposal under Article 226 of the Constitution, in the interest of justice.

---

---

Issues:
1. Extension of stay of recovery of balance amount in respect of assessment year 2009-10 by the Tribunal beyond 365 days.
2. Jurisdiction of the High Court to grant stay of recovery till disposal of appeal by the Tribunal under Article 226 of the Constitution.

Issue 1:
The petitioner filed an appeal before the Income Tax Appellate Tribunal challenging an order by the Dispute Resolution Panel. The Tribunal initially granted stay of the demand on the condition of depositing 40% of the demand. The petitioner complied by depositing a specified amount. Subsequently, the Tribunal extended the interim stay beyond 365 days, which was challenged in the High Court. The High Court referred to a previous decision and clarified that the Tribunal lacks authority to extend stay beyond 365 days. As the petitioner's appeal was delayed due to reasons not attributable to them, the High Court decided that the petitioner cannot approach the Tribunal for further extension of stay. The appeal was listed for hearing after the 365-day period.

Issue 2:
The petitioner approached the High Court through a writ petition seeking a stay on the recovery of the balance amount until the Tribunal's appeal disposal. The petitioner's counsel presented previous court orders where the High Court had extended stay granted by the Tribunal till appeal disposal under Article 226 of the Constitution. The High Court recognized the established principle that it can grant such relief if deemed necessary for justice. Considering the circumstances where the Tribunal was actively hearing the appeal and had already granted conditional stay, the High Court decided to continue the stay order granted by the Tribunal until the appeal's disposal, in the interest of justice. The writ petition was disposed of accordingly.

---