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Appeal to Appellate Tribunal-Revenue restrained from enforcing demand during pendency of appeal-Further extension of time denied on the ground of power of Tribunal to grant stay limited to total period of one year

DELHI HIGH COURT

 

W. P. (C.) No. 2699 of 2014.

 

SHOWA CORPORATION .............................................................................Appellant.
v.
DEPUTY DIRECTOR OF INCOME-TAX.......................................................Respondent
 (INTERNATIONAL TAXATION)

 

S. RA VINDRA BHAT and VIBHU BAKHRU JJ.

 
Date : April 30,2014.
 
Appearances

Piyush Kaushik, Advocate, 'for the appellant.
Balbir Singh, Senior Standing Counsel and Abhishek Singh Baghel, Advocate, for the respondent.


Section 254(2) of the Income Tax Act, 1961 and Article 226 of the Constitution of India — Appeal — Appeal to Appellate Tribunal - Revenue restrained from enforcing demand during pendency of appeal — Further extension of time denied on the ground of power of Tribunal to grant stay limited to total period of one year — Showa Corporation v. Deputy Director of Income Tax (International Taxation)


JUDGMENT


1 Issue notice.

2 Mr, Abhishek Singh Baghel accepts notice.

The petitioner's grievance is that the Tribunal by its order dated April 4,3 2014, refused to extend the stay citing section 254(2A) of the Income-tax Act, 1961.

The essential facts of the petitioner's appeal before the Income-tax Appellate Tribunal was that in the year 2011 it was the beneficiary of an interim order staying the demand on December 16, 2011. The Income-tax Appellate Tribunal continued to extend the validity of that order from time to time. On March 18, 2014, when the petitioner sought further extension of time, the Income-tax Appellate Tribunal by the impugned order rejected the same citing section 254(2A) of the Act which enjoins that the interim relief granted not to exceed one year.

We have heard the counsel for the parties and considered the submissions. It is apparent that the Income-tax Appellate Tribunal was satisfied about the overall interest of justice when it, in fact, amended the interim relief in the first instance, Le., on December 16, 2011. Whilst, the statutory provision which prevents it from extending the interim stay is undenied, yet this court's power under article 226 of the Constitution to pass appro­priate orders in the interest of justice, equally cannot be denied. In the cir­cumstances, the respondent is hereby restrained from enforcing the tax deduction in respect of the assessment year in question assessment year 2007-08, during the pendency of the petitioner's appeal 1. T. A. No. 4868/ Del/2011. It would request the Tribunal to dispose of that appeal preferably within three months from today.

The writ petition is allowed in the above terms.  

Dasti.  

 

[2014] 364 ITR 460 (DEL)

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