Tribunal has no power to extend stay beyond 365 days even if assessee not at fault

CIT vs. Ecom Gill Coffee Trading Pvt. Ltd (Karnataka High Court)

The Tribunal allowed the assessee’s stay applications for a period beyond 365 days (presumably following Tata Communications (ITAT Bom SB)). The department filed an appeal claiming that the grant of stay beyond 365 days was in contravention of the third proviso to s. 254(2A) inserted by the FA 2008 w.e.f. 1.10.2008. HELD by the High Court allowing the appeal: