Tribunal Extends Stay on Recovery Demand Due to COVID-19 with Delhi High Court Precedent

The Tribunal granted the stay application seeking an extension against the recovery of an outstanding demand, citing the Delhi High Court's extension of stay on recovery proceedings due to the COVID-19 pandemic and government restrictions. The existing stay order was automatically extended until the scheduled appeal hearing date, ensuring the applicant's protection until then. The Tribunal did not delve into the merits of the application, as the High Court's order already provided for the extension, ultimately allowing the stay application.

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Issues: Stay application seeking extension of stay against the recovery of outstanding demand.

Analysis:
The applicant filed a stay application seeking an extension of stay against the recovery of an outstanding demand of Rs. 1,00,24,218. During the hearing, the applicant's representative highlighted a previous order by the Tribunal in a similar case where protection was granted till the date of hearing, ensuring the assessee's interest is safeguarded. The appeal was scheduled for a hearing on 11.06.2020. On the other hand, the Revenue representative acknowledged that the Delhi High Court had already extended the stay on recovery proceedings until 15.06.2020. The Tribunal considered the extraordinary circumstances due to the COVID-19 pandemic and the orders issued by the Delhi High Court. The High Court had automatically extended interim orders concerning stay matters until 15.06.2020 or until further orders, taking into account the ongoing restrictions imposed by the Government of India. Consequently, the Tribunal decided that there was no need to delve into the merits of the stay application as the existing stay order was extended until 11.06.2020 based on the High Court's order. The applicant's request for protection till the date of hearing was granted, and the stay application was allowed.

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