The Income Tax Appellate Tribunal (ITAT), Bangalore Bench held that the balance of convenience is in favour of the assessee in extending the stay, even though this is the second extension.
The assessee, United Spirits Ltd. has filed this stay application seeking an extension of the stay granted by the co-ordinate bench of the Tribunal, vide its order passed for the assessment year 2013-14.
The counsel appearing for the assessee submitted that the last stay order was passed by the co-ordinate bench extending the stay granted earlier. At that point of time, the appeal had been posted for hearing on November 18, 2019. He submitted that the Bench adjourned the appeal on November 18, 2019, since the appeal of the earlier year i.e Assessment Year 2012-13 having similar grounds was already heard by ITAT and order was awaited.
It is further submitted that there is no change in facts and circumstances under which the earlier stay was granted. He accordingly submitted that the delay in not disposing of the appeal is not attributable to the assessee and accordingly prayed for extension of the stay.
The Bench consisting of the Judicial Member, Beena Pillai, and an Accountant member, A.K. Garodia in the light of the decision rendered by Hon’ble Delhi High Court in the case of Pepsi Foods (P) Ltd held that the view that the balance of convenience is in favour of the assessee in extending the stay, even though this is the second extension.
“We extend the stay of collection of outstanding demand for a further period of 6 months from the date of this order or till the date of disposal of the appeal, whichever period expires earlier,” the tribunal said.
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