Itxa/3910/2009 Of The Commissioner Of Income Tax -7 Mumbai v. Ronuk Industries Ltd

sas IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.3910 OF 2009 The Commissioner of Income Tax-7 ..Appellant. V/s. M/s. Ronuk Industries Ltd. ..Respondent. Mr.N.A. Kazi for appellant. None for respondent. CORAM : J.P. DEVADHAR AND R.M. SAVANT, JJ. DATED : 22ND NOVEMBER, 2010 P.C. :- 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 ITAT 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(2) by ignoring the mandatory amendment in the third proviso to sec. 254(2A) made by the Finance Act, 2008 w.e.f. 1-10-2008 providing that the order of stay granted shall vacate after the expiry of 365 days even if the delay in disposing off the appeal is not attributable to the assessee ? " 2.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/s. ITAT & Ors. reported in 295 ITR 22 (Bom). 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. (R.M. SAVANT, J.) (J.P. DEVADHAR, J.)