CIT Vs Durr India Pvt. Ltd. (Madras High Court)
In the case of CIT Vs Durr India Pvt. Ltd., the Madras High Court reviewed an appeal by the Revenue contesting the Income Tax Appellate Tribunal’s (ITAT) order that had granted a stay beyond the statutory limit of 365 days under Section 254(2A) of the Income Tax Act. The Revenue argued that the ITAT’s extension of the stay to 718 days was inappropriate, especially as the delay was attributed to the assessee. However, the ITAT had previously determined that the assessee complied with conditions of prior stay orders and had made payments that reduced the outstanding demand. The Tribunal noted that the delay in resolving the appeal was not the fault of the assessee, primarily due to the need for a Special Bench. Ultimately, the Madras High Court found that the stay order had already expired and ruled that no further adjudication was necessary. The court disposed of the appeal while leaving open the substantial questions of law for future consideration, clarifying that it did not express an opinion on the case’s merits.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
Heard both sides and perused the materials available on record.
