Stay of tax demand extended where appeal delay was not attributable to the assessee and recovery protection remained justified.

Stay of outstanding tax demand was extended because the delay in hearing the appeal was not attributable to the assessee. The assessee had complied with earlier stay conditions and remained ready to argue the appeal, while adjournments arose from factors beyond its control, including pendency of connected matters and lack of available time. As there was no material change in facts, the balance of convenience favoured continuation of protection against recovery. The stay was extended for six months or until disposal of the appeal, whichever was earlier, subject to a direction that adjournments be sought only for bona fide reasons.

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Issues: Whether the stay of outstanding tax demand deserved extension when the delay in disposal of the appeal was not attributable to the assessee.

Analysis: The record showed that the assessee had consistently complied with the earlier stay conditions and had been ready to argue the appeal on the dates fixed. The adjournments were occasioned by circumstances beyond the assessee's control, including pendency of connected matters and non-availability of time, and there was no material change in facts since the earlier extensions. In these circumstances, the balance of convenience supported continuance of protection against recovery.

Conclusion: The stay was extended for six months or till disposal of the appeal, whichever was earlier, with a direction that no adjournment be sought except for bona fide reasons.

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