Tribunal extends stay on tax collection for disputed demand, warns against unnecessary adjournments

The Tribunal granted the stay petition, extending the stay on the collection of an outstanding disputed demand for the assessment year 2012-13 amounting to Rs. 1029.21 Crore for a further period of 180 days or until the disposal of the appeal, whichever is earlier. The Tribunal emphasized that any adjournment sought by the assessee during the appeal hearing without valid reasons would automatically vacate the stay granted. The decision was made with consideration of the lack of change in circumstances and the delay in appeal disposal not being attributable to the assessee.

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Issues:
Stay petition seeking extension of stay on collection of outstanding disputed demand for the assessment year 2012-13.

Analysis:

1. Extension of Stay: The assessee filed a stay petition seeking an extension of stay on the collection of an outstanding disputed demand of Rs. 1029.21 Crore for the assessment year 2012-13. The assessee's representative argued that there has been no change in circumstances since the previous grant of extension and that the delay in the disposal of the appeal is not due to the assessee. The Revenue Department opposed the extension of stay.

2. Decision: The Tribunal considered the submissions from both sides and noted that there has been no change in the circumstances of the case, and the delay in the disposal of the appeal is not attributable to the assessee. Consequently, the Tribunal extended the stay for a further period of 180 days from the date of the order until the disposal of the appeal, whichever is earlier. However, a condition was imposed that if the assessee seeks adjournment during the appeal hearing without justifiable reasons, the stay granted would automatically stand vacated. The appeal was scheduled for a hearing on 06-11-2019.

3. Outcome: The Tribunal allowed the stay petition, granting the extension of stay as indicated above. The order was pronounced in the open court, ensuring clarity and transparency in the proceedings.

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