Extension granted on tax demand linked to section 80IC deduction disallowance with no delay by assessee.

The Tribunal granted an extension of stay on the outstanding tax demand linked to a deduction disallowance under section 80IC. The extension was for six months or until the appeal's disposal, with conditions previously imposed maintained. The Tribunal found no delay attributable to the assessee and approved the stay application on 6th April 2018.

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Issues: Stay application for extension of stay granted on 29.09.2017 due to tax demand arising from addition under section 80IC.

Analysis:
1. The assessee filed a stay application seeking an extension of the stay granted on 29.09.2017 against the recovery of outstanding demand. The assessee's representative stated compliance with all conditions imposed during the initial stay. The main appeal was scheduled for a hearing on 1st May 2018, and the stay had expired on 28th March 2018. The tax demand was linked to an addition under section 80IC, with the claim that if the assessee is allowed deduction under this section, no demand would remain.

2. The Departmental Representative (DR) acknowledged that the primary demand was due to the disallowance of deduction under section 80IC.

3. The Tribunal considered both parties' submissions and noted that the appeal was listed for a hearing on 22.03.2018 after the initial stay extension on 29.09.2017. However, due to time constraints, the hearing was adjourned to 01.05.2018. The Tribunal found no delay attributable to the assessee and, therefore, extended the stay on the outstanding demand for six months or until the appeal's disposal, maintaining the earlier imposed conditions.

4. Consequently, the Tribunal allowed the stay application filed by the assessee, pronouncing the order on 6th April 2018.

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