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CA Final · Direct Tax Laws & International Taxation · Appeals and Revision

Kapoor Industries filed a revision application on 10 January 2027 (FY 2026-27). The one-year time limit under section 378(7) would end on 31 March 2028. A High Court stayed the revision proceedings from 1 February 2028 until a certified copy of the order vacating the stay was received by the Commissioner on 10 March 2028. How does the limit for passing the order stand under section 378(8) and (9)?

The stay period is excluded under section 378(8), and because the time left after exclusion is under sixty days, section 378(9) extends the remaining period to sixty days. The order can therefore be passed within sixty days from the date the vacating order is received, 10 March 2028.

  1. AThe stay period is excluded, but after exclusion the remaining time is under sixty days, so the remaining period is extended to sixty days, and the order may be passed within sixty days from 10 March 2028.Correct
  2. BThe order must still be passed by 31 March 2028, since a stay does not affect the limit.
  3. CThe limit is extended by exactly the stay period of 38 days, with no sixty-day rule.
  4. DThe proceedings lapse because the stay lasted beyond one month.

Explanation

Section 378(8)(b) excludes the stay period, from 1 February 2028 to 10 March 2028. That leaves a remaining period of the original limit of 1 January to 31 January plus 1 February to 31 March excluded... in effect only the time before the stay, 1 February less the 31 March end, is cut short, so the remaining time is under sixty days. Section 378(9) then extends the remaining period to sixty days. A bare extension by the stay length is not what the provision provides.

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