Stay Petitions Extended: Tribunal Grants Stay Without Deposit Amid Lockdown

The Stay Petitions of the assessee were allowed, and the stay granted on 08/11/2019 was extended until 15/6/2020, in accordance with the order of the Honorable Delhi High Court. The Tribunal reconsidered and granted stay without requiring any deposit, emphasizing the restricted functioning of the Tribunal due to the nationwide lockdown. The counsel successfully argued against the applicability of the amended provision under section 254(2A) of the Income Tax Act, 1961, citing the delay in appeal disposal not attributable to the assessee's conduct.

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Issues:
Extension of stay granted in previous orders for assessment years 2010-11, 2012-13, and 2013-14; Applicability of amended provision under section 254(2A) of the Income Tax Act, 1961; Impact of delay in disposal of appeal on the extension of stay; Consideration of Central action plan issued by CBDT; Interpretation of previous orders and judgments regarding the payment condition for granting stay.

Analysis:
The judgment pertains to the extension of stay granted in previous orders for assessment years 2010-11, 2012-13, and 2013-14. Initially, a conditional stay was granted, but upon the direction of the Honorable Delhi High Court, the Tribunal reconsidered and granted stay without requiring any deposit. The Tribunal consistently decided not to levy any payment condition for granting the stay, except for a few specific issues in the case.

The issue of applicability of the amended provision under section 254(2A) of the Income Tax Act, 1961 was raised. The counsel for the assessee argued that the amendment introduced by the Finance Act, 2020, regarding the payment of 20% of the demand or furnishing equivalent security, does not apply to the current case seeking an extension of the existing stay. The counsel emphasized that the delay in appeal disposal was not due to the assessee's conduct, justifying the extension of stay.

Regarding the impact of the delay in disposal of the appeal on the extension of stay, the counsel highlighted the restricted functioning of the Tribunal due to the nationwide lockdown by the Government of India. The counsel referred to the Central action plan issued by the CBDT, emphasizing the need to consider the prevailing situation in the country while deciding on the extension of stay.

The interpretation of previous orders and judgments regarding the payment condition for granting stay was crucial. The Tribunal considered the orders of the Honorable Supreme Court and the Honorable High Court, which led to the automatic extension of the stay until a specified date. In light of these legal positions, the Tribunal extended the stay granted on 08/11/2019 until 15/6/2020, aligning with the order of the Honorable Delhi High Court dated 15th May 2020.

In conclusion, the Stay Petitions of the assessee were allowed, and the stay granted on 08/11/2019 was extended until 15/6/2020, as per the order of the Honorable Delhi High Court.

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