Bombay H.C : stay of outstanding demand beyond the period of 365 days

High Court Of Bombay

CIT Vs. Ronuk Industries Ltd.

Section : 254

J.P. Devadhar And R.M. Savant, JJ.

IT Appeal No. 3910 Of 2009

November  22, 2010


1. The question of law framed by the Revenue in this appeal reads as under :

“Whether on the facts and in the circumstances of the case and in law, the Income-tax Appellate Tribunal was justified in holding that the case of the assessee is fit case for stay of outstanding demand beyond the period of 365 days as per the provisions of section 254(2A) by ignoring the mandatory amendment in the third proviso to section 254(2A) made by the Finance Act, 2008, with effect from October 1, 2008 providing that the order of stay granted shall vacate after the expiry of 365 days even if the delay in disposing of the appeal is not attributable to the assessee ? ”

2. A perusal of the order shows that the Tribunal has allowed the claim of the assessee by following the decision of this court in the case of Narang Overseas (P.) Ltd. v. ITAT [2007] 295 ITR 22. No fault can be found with the order of the Tribunal in following the binding decision of this court. The appeal is dismissed with no order as to costs.

[Citation : 333 ITR 99]

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