ITAT stays Recovery of demand from Infosys for a period of 180 days [Read Order]

Recovery demand - ITAT - Infosys - Taxscan

The Income Tax Appellate Tribunal (ITAT), Bangalore Bench stayed the recovery of demand from Infosys for a period of 180 days.

The assessee, M/s Infosys Ltd. filed this stay application seeking an extension of the stay granted by the Tribunal for the assessment year 2012-13.

The assessee submitted that the appeal had been fixed for hearing on January 20, 2020, when the earlier stay order was passed. Thereafter, the case was fixed on 18th March 2020, and 9th June 2020. On all the three occasions, the Revenue sought an adjournment and hence the appeal has now been posted for hearing on September 24, 2020.

There is no change in facts and further, the delay in disposing of the appeal is not attributable to the assessee. Accordingly, it was prayed that the stay granted earlier may kindly be extended.

The assessee contended that the existence of all conditions for grant of stay has already been considered by this Tribunal and at this stage, new conditions cannot be imposed.

The assessee further contended that the non-existence of financial hardship cannot be conclusive in the matter. In any event, these parameters have already been tested by the Tribunal when it originally granted an order of stay subject to certain conditions.

The Appellate Tribunal bench headed by the Vice President N.V Vasudevan extended the stay for a further period of 180 days commencing from the date of this order or till the date of disposal of the appeal, whichever period expires earlier.

The tribunal was of the view that the stay is already granted by the Tribunal, which deserves an extension.

“We make it clear that the assessee should not seek adjournment on the date of hearing without reasonable cause, failing which the present stay order shall be subjected to review by the Division Bench hearing the appeal,” the tribunal said.

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