2010 (4) TMI 747

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....constitutional validity of the third proviso inserted in section 254(2A) of the Income-tax Act, 1961 by the Finance Act of 2008, with effect from October 1, 2008.   2. In the present case, a stay petition was filed before the Income-tax Appellate Tribunal at Pune on July 29, 2008, for stay under section 254(2A). By an order dated August 29, 2008, stay was granted by the Tribunal for a peri....

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....dingly, the application for stay was rejected and the appeal was posted for final hearing on February 25, 2010. The appeal, the court is informed, is still pending.   3. Under the first proviso to section 254(2A), the Appellate Tribunal is empowered to pass an order of stay for a period not exceeding one hundred and eighty days from the date of such order and the Tribunal has to dispose of....

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....wed under the second proviso, which shall not, in any case, exceed three hundred and sixty-five days, the order of stay shall stand vacated after the expiry of such period or periods, even if the delay in disposing of the appeal is not attributable to the assessee.   4. A stringent provision is made by the third proviso to section 254(2A), as a result of which even if the delay in disposin....

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....e. It is unfortunate that the Tribunal simply adjourned the appeal merely on the ground of the pendency of an identical issue before the Special Bench. The state of affairs which has come to pass could well have been avoided by the appeal being taken up for final disposal.   5. Be that as it may, counsel appearing on behalf of the Revenue has, on instructions from the Commissioner of Incom....