ITAT Grants 180-Day Stay on Rs.7.34 Cr Demand Pending Appeal; Emphasizes Timely Action on Assessee's Part.

The ITAT granted the assessee's Stay Application, extending the stay on the recovery of the outstanding demand of Rs.7,34,33,297 for 180 days or until the main appeal's disposal, whichever is earlier. The Tribunal emphasized the pending rectification application before the DRP and instructed the assessee to avoid unnecessary adjournments.

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Issues involved:
Extension of stay of outstanding demand amounting to Rs.7,34,33,297

Analysis:
The Stay Application was filed by the assessee seeking an extension of the stay of the outstanding demand. The Counsel for the assessee referred to a previous order where the stay was extended due to the absence of any change in facts and circumstances. The Tribunal had granted an ad-interim stay in a previous order, emphasizing that no demand would be recovered until the application for rectification before the DRP was decided. The Tribunal allowed the application with specific directions, including the stay being in effect for 180 days or until the decision of the main appeal. The assessee had filed a rectification application before the DRP, which was still pending, and the outcome would impact the case's merits. Considering the circumstances, the Tribunal extended the stay for six months or until the disposal of the main appeal, whichever occurred earlier. The Tribunal noted that the assessee did not seek adjournment and applied for early hearing, but due to non-functionality of the Bench or adjournment requests by the Revenue, the appeal could not be heard. The Tribunal extended the stay on the recovery of demand for 180 days or until the appeal's disposal, emphasizing that the rectification application's adjudication was crucial. The assessee was instructed not to seek adjournment without unavoidable circumstances.

In conclusion, the Stay Application of the assessee was allowed, and the stay on the recovery of demand was extended. The order was pronounced in open court on a specified date.

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