DIRECTOR OF INCOME TAX Vs. JAMSHETJI TATA TRUST

JUDGEMENT

(1.) Rule, returnable forthwith. By consent of the parties the petition is taken up for final hearing. By this petition under article 226 of the Constitution of India the Revenue challenges the order dated December 20, 2013, passed by the Income-tax Appellate Tribunal ("the Tribunal") granting stay of an outstanding demand of tax of Rs. 290 crores under the first proviso to section 254(2A) of the Income-tax Act 1961 ("the Act"). The impugned order granted a stay for a period of six months from December 20, 2013, or disposal of the appeal, whichever is earlier. For the present, the appeal has been fixed by the Tribunal on March 10, 2014.

(2.) Mr. Suresh Kumar, learned counsel for the Revenue, being aggrieved by the order of the Tribunal, submits as under:

(3.) As against the above, Mr. Soli Dastur, senior counsel for the respondent-assessee, in support of the impugned order dated December 20, 2013, submits as under: