Corning Sas India Branch Office v. Deputy Director Of Income Tax, & ANR.

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IN THE HIGH COURT OF DELHI AT NEW DELHI

+ W.P.(C) 2538/2015 & CM 4543/2015 CORNING SAS INDIA BRANCH OFFICE ..... Petitioner Through :

Ms Kavita Jha with Mr Vivek Bansal versus DEPUTY DIRECTOR OF INCOME TAX, & ANR ..... Respondents Through :

Mr Kamal Sawhney with Mr Shekhar Garg

CORAM:

HON'BLE MR. JUSTICE BADAR DURREZ AHMED HON'BLE MR. JUSTICE SANJEEV SACHDEVA

O R D E R

% 13.03.2015 Issue notice.

Notice is accepted by the learned counsel appearing on behalf of the respondents.

The only issue raised here is with regard to the extension of stay under the proviso to section 254(2A) of the Income-tax Act, 1961. It is clear that, in view of a decision of a Division Bench of this court in CIT v. Maruti Suzuki (I) Ltd - W.P.(C) 5086/2013 decided on 21.02.2014, the Income Tax Appellate Tribunal does not have any power to extend the period of stay beyond 365 days from the initial date of grant of stay.

In the appeal pending before the Tribunal (ITA 1129/Del/2014) the initial stay was granted on 14.03.2014 and was extended from time to time. The last extension was granted on 19.09.2014 till the disposal of the appeal or a period of 180 days whichever was earlier. We are informed that the appeal was heard and the next date of hearing is 19.03.2015. It is for this reason that an extension of the stay has been sought.

By virtue of the said decision in the Maruti Suzuki (supra) it had been clearly stipulated that while the Tribunal did not have the authority to extend stay beyond the

period of 365 days, the High Court had the power to do so in deserving cases. In our view this is one of those cases.

Consequently, we extend the stay granted by the Tribunal earlier till the disposal of the appeal by the Tribunal. We hope that the appeal shall be disposed of expeditiously by the Tribunal. The writ petition stands disposed of.

Dasti.

BADAR DURREZ AHMED, J MARCH 13, 2015 SANJEEV SACHDEVA, J SR