Tribunal Grants Stay Extension Due to Departmental Delays

The Tribunal allowed the assessee's application for an extension of the stay on the recovery of the outstanding demand. The delay in appeal disposal was attributed to adjournments sought by the Departmental Representative, not the assessee. The Tribunal directed the appeals for the current and previous assessment years to be taken up together for expeditious disposal. As the proceedings were ripe for final hearing and the delay was not caused by the assessee, the Tribunal extended the stay for six months or until the appeal's disposal, whichever is earlier. The decision was pronounced in open court on 29/09/2017.

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Issues:
Extension of outstanding demand sought by the assessee.

Analysis:
The assessee sought an extension of the outstanding demand of Rs. 125,42,11,550, previously extended by the Tribunal's order dated 17/03/2017. The Tribunal had initially granted a stay on the recovery of the outstanding demand on 18/03/2016, with certain conditions, including a deposit of Rs. 13.00 crores by the assessee. The Tribunal noted compliance with these conditions in its order dated 17/03/2017. The delay in disposing of the appeal was attributed to adjournments sought by the Departmental Representative, not the assessee. The assessee requested an extension of the stay as the appeal was fixed for hearing on 02/11/2017, along with a cross-appeal by the Revenue for the same assessment year. The Departmental Representative did not dispute these facts.

The Department had been seeking time to argue the appeal before the Tribunal, citing an issue related to deduction under section 80IC of the Act, which was based on a previous assessment year pending before the CIT(A). The Tribunal had previously directed not to recover the demand related to this issue until the disposal of the appeal by the CIT(A). The CIT(A) had since disposed of the appeal for the previous assessment year, and the matter was now before the Tribunal. The Tribunal directed the appeals for the current and previous assessment years to be taken up together for expeditious disposal. Given that the delay in appeal disposal was not due to the assessee and the proceedings were ripe for final hearing, the Tribunal extended the stay on the recovery of the outstanding demand for six months or until the appeal's disposal, whichever is earlier.

Therefore, the stay application of the assessee was allowed, and the decision was pronounced in the open court in the presence of both parties on 29/09/2017.

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