Tribunal grants stay extension for disputed demands up to 19.03.2021. Assessee cautioned against requesting adjournments

The Tribunal allowed all Stay Petitions filed by the assessee seeking a stay of outstanding disputed demands for Assessment Years 2011-12 to 2018-19. The Tribunal granted an extension of stay up to 19.03.2021 or till the disposal of appeals, whichever is earlier. It emphasized that the assessee should not request adjournments without valid reasons during appeal hearings to avoid automatic vacation of the granted stay.

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Issues:
Stay petitions filed by the assessee seeking stay of outstanding disputed demands for Assessment Years 2011-12 to 2018-19, applicability of second proviso to section 254(2A) of the Act, amendment in first proviso in section 254(2A) of the Act, consideration of payment made by the assessee for granting stay extension.

Analysis:
The assessee filed sixteen Stay Petitions (SPs) seeking a stay of outstanding disputed demands for eight Assessment Years spanning from 2011-12 to 2018-19. Each year had two SPs, one for the demand under section 201(1) and the other for the demand under section 201(1A) of the Income Tax Act, 1961, making a total of 16 SPs. The total disputed demand for each year was detailed in a table provided in the judgment.

During the hearing, the assessee's representative argued that the delay in appeal disposal was not due to the assessee, and stay should be granted as the payment made by the assessee exceeded 50% of the disputed demand for most years. The Revenue's representative highlighted the provisions inserted by the Finance Act, 2020, limiting the duration of stay and requiring a minimum payment of 20% of the disputed amount for granting stay.

The Tribunal considered both submissions, noting that the total stay granted would not exceed 365 days even with a slight extension. Regarding the amended first proviso in section 254(2A), the Tribunal found that the payment made by the assessee already exceeded 51% of the total disputed demand for all years, satisfying the amended provisions. The Tribunal clarified that the payment percentage should be considered from the date of raising the demand by the AO, not just post-amendment. Consequently, the Tribunal granted an extension of stay up to 19.03.2021 or till the disposal of appeals, whichever is earlier.

The Tribunal emphasized that the assessee should not request adjournments without valid reasons during the appeal hearings, as doing so would automatically vacate the stay granted. Ultimately, all Stay Petitions filed by the assessee were allowed, and the order was pronounced in open court after the completion of the hearing.

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