High Court grants extension of stay in tax assessment case, citing justice principle

The High Court granted an extension of stay in the case concerning the assessment year 2009-10 until the disposal of the appeal by the Tribunal. Despite the Tribunal's inability to extend the stay beyond 365 days from the initial grant, the Court, citing previous instances and the principle of justice, allowed the petitioner's writ petition for the stay extension. The Court emphasized that under certain circumstances, such relief can be granted, as seen in the Maruti Suzuki case. As the appeal was pending before the Tribunal, the Court deemed it appropriate to continue the stay until the appeal's final disposal.

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Issues:
1. Extension of stay in respect of the assessment year 2009-10 till the disposal of the appeal by the Tribunal.

Analysis:
1. The petitioner filed an appeal before the Income Tax Appellate Tribunal against an assessment order and obtained an initial stay of demand on 31.03.2014. A subsequent order on 19.09.2014 extended the interim stay. However, a Division Bench decision clarified that the Tribunal cannot extend the stay beyond 365 days from the initial grant. Since the 365-day period would expire on 30.03.2015, the petitioner could not seek further extension from the Tribunal. Despite the appeal being listed for hearing on 13.04.2015, it could not proceed due to reasons not attributed to the petitioner.

2. Due to these circumstances, the petitioner approached the High Court through a writ petition seeking an extension of stay until the Tribunal's appeal disposal. The Court noted previous orders where it had extended stays granted by the Tribunal until appeal disposal under Article 226 of the Constitution. The Court emphasized that if circumstances and justice warrant, such relief can be granted, as established in the Maruti Suzuki case.

3. Considering that the petitioner had conditional stay from the Tribunal and the appeal was under Tribunal hearing, the Court deemed it just to continue the stay order until the appeal's disposal by the Tribunal. Consequently, the writ petition was disposed of, and the stay was extended accordingly.

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